New Delhi: Precious metals came under renewed selling pressure in India on Tuesday as gold and silver rates extended their downward slide for another session, driven largely by a strong rally in global crude oil prices.
On the Multi Commodity Exchange (MCX), gold futures hovered near the Rs 1.37 lakh level per 10 grams, while silver traded below the Rs 2.18 lakh per kilogram mark. Both metals witnessed declines of 2 to 4 percent during early trading hours.
Physical gold prices in the domestic market also fell, though at a relatively slower pace than the previous day’s steeper drop. The price of 10 grams of 24-carat gold declined by Rs 2,940 to Rs 1,40,350. Similarly, 22-carat gold slipped by Rs 2,700 to Rs 1,28,650, and 18-carat gold was down by Rs 2,210 to Rs 1,05,260.
Internationally, spot gold dropped around 2 percent to trade near $4,340 per ounce. Silver prices plunged more sharply, falling 3.5 percent to hover between $66 and $67 per ounce.
Meanwhile, Brent crude and US WTI futures surged 4-5 percent, climbing to around $105 per barrel and $92 per barrel respectively.
Market participants noted that precious metals remained under pressure after Tehran dismissed US President Donald Trump’s recent announcement as an attempt to influence financial markets. Iran launched fresh attacks on US targets even as Israel continued its strikes against Iranian positions.
The combination of escalating geopolitical risks in the Middle East and the sharp rise in energy prices has created a complex environment for safe-haven assets like gold and silver, leading to profit booking and position unwinding by investors.
Traders and bullion dealers are closely monitoring further developments in the US-Iran situation, which continues to dominate global commodity sentiment. Any fresh escalation or de-escalation signals could trigger significant volatility in precious metals prices in the coming sessions.