Gold and silver prices continued to fall on Monday, surprising many investors who usually expect precious metals to rise during global tensions. Despite the ongoing conflict involving the US and Iran, both metals declined sharply in the domestic market.
On the Multi Commodity Exchange (MCX), gold and silver prices dropped significantly on the first trading day of the week. At the time of writing, gold was trading at around Rs 1,55,000 per 10 grams, down by Rs 3,466 or 2.19%. Silver was priced at about Rs 2,47,348 per kilogram, falling by Rs 11,434 or 4.41%.
SHARP FALL IN PRECIOUS METAL PRICES
Market data shows that both gold and silver opened lower and remained under pressure during the trading session. The fall has surprised traders because precious metals generally act as safe-haven assets during periods of geopolitical tension.
According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, global factors are playing a major role in the current price movement.
“Gold and silver prices in India saw a decline today, with gold trading at Rs 1,48,614 per 10 grams and silver at Rs 2,35,573 per kg, reflecting international prices of $5003.95 per ounce and $79.32 per ounce, respectively,” Garg said.
He added that the drop in prices is mainly linked to rising crude oil prices.
“The fall in precious metals is largely attributed to rising crude oil prices, which surged to $100.15 per barrel, raising inflation fears and dampening expectations of a rate cut by the US Federal Reserve,” he explained.
SILVER DROPS SHARPLY IN RECENT DAYS
Silver has seen particularly sharp corrections in the past few trading sessions. On February 27, the silver price on MCX was Rs 2,82,644 per kilogram. Within just 11 trading days, the price has dropped by Rs 31,898.
This decline is surprising for many investors because precious metals often rise during geopolitical tensions or economic uncertainty.
Silver had earlier reached a lifetime high of Rs 4,20,048 per kilogram on January 29. Since then, prices have fallen continuously and are now lower by more than Rs 1,69,000 per kilogram from that peak.
GLOBAL TENSIONS STILL AFFECTING MARKET SENTIMENT
According to Garg, geopolitical tensions are still influencing the market, even though prices are currently falling.
“Ongoing geopolitical tensions in the Middle East, particularly the conflict involving the US and Iran, have further complicated market sentiments, leading investors to reassess their positions in safe-haven assets,” he said.
WHAT INVESTORS SHOULD DO NOW
Market experts say investors should avoid making panic decisions during such volatile phases. Short-term corrections are common in commodities, especially when global economic signals are mixed.
For long-term investors, such price corrections may offer gradual buying opportunities. However, analysts suggest investing in small amounts rather than making large purchases at once.
Experts also advise investors to keep an eye on global factors such as crude oil prices, inflation trends and the US Federal Reserve’s interest rate outlook, as these factors can influence gold and silver prices in the coming weeks.
For now, the precious metals market remains volatile, and price movements may continue to depend on global economic and geopolitical developments.
