Gold, Silver Prices Plummet: MCX Gold Below ₹1.61 Lakh, Silver Down 1% Amid Strengthening US Dollar and US-Iran Tensions

Gold and Silver Prices Decline Amid Strong Dollar

Key Figures:

• ₹1,60,651: MCX gold rate for April futures contracts
• ₹1,61,634: Previous close of MCX gold rate
• ₹2,67,497: MCX silver price for May futures contracts
• ₹2,68,285: Previous close of MCX silver price
• $5,041.89: Spot gold price per ounce
• $5,049.40: US gold futures for April delivery per ounce
• $80.99: Spot silver price per ounce
• 99.695: US dollar index against a basket of currencies
• $2,054.65: Spot platinum price
• $1,590.32: Palladium price

Market Analysis

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

On Monday, gold and silver prices in India opened lower following weakness in international bullion prices due to a stronger dollar. The MCX gold rate for April futures contracts opened 0.6% lower at ₹1,60,651 per 10 grams, while the MCX silver price for May futures contracts opened 0.29% lower at ₹2,67,497 per kilogram.

A stronger dollar weighed on greenback-priced precious metals, while higher crude oil prices fueled inflation concerns and dimmed the prospects for near-term reductions in interest rates. Spot gold prices fell 2.5% to $5,041.89 per ounce, while US gold futures for April delivery were down 2.1% at $5,049.40 an ounce.

The US dollar index rose to 99.695 against a basket of currencies, making bullion more expensive for holders of other currencies. The US 10-year Treasury yields also climbed to a near one-month high, raising the opportunity cost of holding non-yielding gold.

A surge in crude oil prices stoked inflation fears and delayed rate-cut expectations, weighing on the safe-haven demand and pushing gold prices down.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities