MCX Gold Prices Plummet Over ₹12,700 per 10 Grams, Silver Drops ₹29,600 per Kilogram Amid Fading Safe-Haven Demand

Market Report: Precious Metals Decline Amid Global Uncertainty

Gold and silver prices are on track for their largest weekly decline in over a month, with MCX gold prices falling ₹12,766 per 10 grams (based on today's low of ₹1,45,570). This decline marks the sharpest weekly fall since late January.

The sell-off in gold prices has also dragged silver prices down by ₹29,645 per kilogram (based on today's low of ₹2,28,871), with the last time silver saw its biggest weekly decline during the final week of January.

The decline in precious metals prices can be attributed to traders shying away from these assets due to concerns that a sharp rise in crude oil prices could lead to prolonged inflation and potentially higher interest rates. This sentiment is reinforced by global central banks, including the US Federal Reserve, which have sounded caution over the Middle East conflict.

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

The conflict, now in its fourth week, has led to a sharp increase in oil prices, with oil prices surging to near four-year highs. In response, global central banks have adopted a cautious stance, with the Reserve Bank of Australia hiking rates, while the Federal Reserve, European Central Bank, Swiss National Bank, and Bank of Japan held rates steady and signalled limited scope for easing in the near term.

The market is now factoring in up to two rate hikes from the Bank of England this year, further reinforcing expectations of tighter monetary policy and limiting the upside in gold despite persistent geopolitical risks.

Key Statistics:

• ₹15,000: decline in domestic gold prices so far this month
• ₹1,62,104 to ₹1,66,074: gold prices rose after the US and Israel launched strikes on Iran on 28 February
• ₹1,45,570: current low price of gold
• ₹12,766: gold price decline this week
• ₹15,330: gold price decline in March so far
• ₹29,645: silver price decline this week

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