Turmoil in the bullion market! Gold plunges by ₹1,900, silver drops by ₹5,500

The impact of the surge in crude oil prices is now clearly visible in the bullion market. On Friday, gold and silver prices recorded a sharp decline for the third consecutive trading session.

Driven by a weak trend in global markets, rising crude oil prices, and a strengthening dollar, gold and silver prices in the national capital’s bullion market fell for the third straight trading session on Friday. According to the All India Bullion Association, gold (99.9% purity) dropped by ₹1,900 to reach ₹1,46,100 per 10 grams (inclusive of all taxes). On Thursday, the price stood at ₹1,48,000 per 10 grams.

Significant decline in silver as well

Similarly, the price of silver fell by ₹5,500 to ₹2,02,000 per kilogram, down from ₹2,07,500 per kilogram in the previous trading session. This marks the third consecutive day of decline for silver. Since September 30, the price of silver has fallen by ₹30,000—a decline of approximately 13%.

Why are prices falling so sharply?

Silver has come under increased pressure amid widespread selling in the commodities market. Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, stated, "Reflecting weak cues from global markets, gold prices in the domestic market have fallen to their lowest level since early July."

Pinky Yadav, a commodities analyst at Choice Broking, noted, "Amid widespread selling in the stock market, the price of silver has dropped by nearly 14% over the past month." "Investors are selling off their holdings in precious metals to offset losses incurred in technology stocks."

He noted that a stronger dollar, rising bond yields, and persistent inflation concerns—exacerbated by growing geopolitical tensions in West Asia—have pushed crude oil prices up to nearly $115 per barrel. This has fueled expectations that interest rates will remain high for an extended period, placing further downward pressure on the prices of gold and silver.

In the global market, the spot price of gold fell below $4,000 per ounce. However, it subsequently recovered and was trading steadily at $4,024.37 per ounce. Meanwhile, the spot price of silver in the international market dropped by 1.41% to $53.83 per ounce.