Gold Prices Plummet by Rs 2,500 to Rs 1.60 Lakh per 10 Grams Amid Escalating US-Iran Tensions

Gold and Silver Prices Plummet as US-Iran Tensions Escalate

Gold prices in the national capital dropped by Rs 2,500 to Rs 1.60 lakh per 10 grams on Monday, tracking losses in global markets. The renewed military exchanges between the US and Iran led to a spike in crude oil rates, causing the yellow metal of 99.9 per cent purity to depreciate by Rs 2,500, or 1.53 per cent, to Rs 1,60,400 per 10 grams (inclusive of all taxes) from Friday's closing level of Rs 1,62,900 per 10 grams.

According to the All India Sarafa Association, silver prices also weakened sharply, falling Rs 5,000, or nearly 2 per cent, to Rs 2,69,700 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,74,700 per kg in the previous session.

Market analysts attributed the decline in gold prices to the rise in US Treasury bond yields, which weighed on precious metals and limited investor appetite for assets such as gold and silver. Additionally, the strengthening of the dollar due to the boosted crude oil prices also contributed to the decline.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

In the international markets, spot gold fell nearly 1 per cent to USD 4,504.97 per ounce, while silver rose 1 per cent to USD 75.93 per ounce. However, spot gold turned volatile, quoting USD 4,500 per ounce on Monday, and silver edged up towards USD 76 per ounce.

Market participants are expected to closely watch the US jobs data, comments from Federal Reserve officials and Treasury Secretary Scott Bessent this week. Traders will also track further developments in West Asia for fresh cues on bullion prices.