Amidst the ongoing tensions in West Asia, gold and silver prices witnessed a decline on the MCX on Monday. The price of silver fell by ₹20,400, settling at ₹2.06 lakh per kilogram. Meanwhile, gold prices dropped by ₹9,759 to reach ₹1.34 lakh per 10 grams.
Gold and Silver Prices in the International Market
In the global market, gold prices have recorded a sharp decline over the past week—a drop considered to be the largest weekly slump in the last 40 years. Prices have fallen from $5,200 to $4,354 per ounce. Both precious metals witnessed selling pressure amidst rising geopolitical tensions and a strengthening US dollar.
On COMEX, gold prices fell by nearly 3% to $4,462 per ounce. Notably, gold had already tumbled by approximately 11% the previous week—a decline considered its steepest weekly drop since 1983. Meanwhile, during Asian trading hours, silver prices also dropped by nearly 3% to reach $67.5 per ounce.
Why Are Gold and Silver Prices Falling?
According to experts, the surge in crude oil prices has heightened concerns regarding inflation. Consequently, expectations of an imminent interest rate cut by central banks—including the US Federal Reserve—have diminished. Since gold is a non-yielding asset, demand for it tends to decline in such an environment, thereby exerting downward pressure on prices.
Furthermore, the strengthening of the US dollar and US bond yields is also proving detrimental to gold and silver. A strong dollar makes gold more expensive for investors holding other currencies, which, in turn, leads to a decline in demand.
West Asia Tensions Heighten Uncertainty
Volatility in the oil market intensified further after US President Donald Trump issued an ultimatum to Iran to reopen the Strait of Hormuz within two days. He warned that failure to do so could result in potential attacks on Iran’s power plants.
In response, Iran warned that if its installations were attacked, it could completely block this vital maritime route and target energy, IT, and water supply infrastructure.
Market Jitters Amidst Military Activity
According to a Reuters report, the United States is deploying thousands of additional Marines and naval personnel to West Asia. This has further escalated tensions in the region—an impact clearly visible in global financial markets.
Analysts note that market uncertainty and risk levels are currently elevated. Consequently, investor sentiment is shifting toward safer yet yield-generating alternatives, a trend that could keep gold and silver prices under pressure.
Politics over the War in Iran: Amidst Criticism of India's Stance, Tharoor States—"This Is Not Cowardice, But Responsible Diplomacy"
Divergent opinions have emerged within the Congress party itself regarding the Indian government’s silence on the conflict in West Asia. While Congress MP Shashi Tharoor defended the
President Draupadi Murmu in Ayodhya: The World's Only 'Ram Yantra' — Crafted in Tamil Nadu; Learn About Its Unique Features
President Droupadi Murmu arrived at the Ram Temple in Ayodhya on the first day of Navaratri. She offered prayers and paid her respects to Ram Lalla. Subsequently, she consecrated the 'Shri Ram Yantra'
BCCI May Modify Central Contracts for Jasprit Bumrah; The Matter Involves ₹2 Crore.
The Board of Control for Cricket in India (BCCI) has decided to discontinue the 'A+' category in its central contracts for the 2025-26 season, a move expected to bring about significant changes to the
Who is the singer behind the song 'Sarke Chunar', and does lyricist Rakib Alam have a long-standing association with 'double-meaning' songs?
The song ‘Sarke Chunar Teri Sarke’ from Sanjay Dutt and Shilpa Shetty’s film KD: The Devil has landed in controversy. Nora Fatehi and Sanjay Dutt feature in the dance sequence for
Munawar Faruqui Mobbed: Badly Trapped in Crowd, Fans Shove and Push; Security Steps In to Rescue Him
A video is currently going viral on social media, in which Munawar Faruqui is seen badly mobbed by a crowd. People are jostling and pushing one another in an attempt to click photos with him. Munawar
'Love for us, marriage with them?': Kharge's jibe at Deve Gowda sparks laughter in the Rajya Sabha; even PM Modi smiles.
During the farewell ceremony for retiring MPs in the Rajya Sabha, Leader of the Opposition Mallikarjun Kharge left everyone in splits with his witty remarks. He made such amusing observations
IPL 2026: Will the Sale of RCB Set a New Record in the League? Bidding for the Franchise Approaches $2 Billion.
The sale of the renowned IPL franchise, Royal Challengers Bangalore (RCB), has now reached its final stage. According to media reports, only two major contenders remain in the race. Bidding is
When Kumar Sanu Sang a 35-Year-Old Song for Premanand Ji Maharaj—People Are Still Crazy About This Cult Classic Today.
Much like the general public, numerous Bollywood celebrities frequently visit Premanand Maharaj to seek his blessings. Following in the footsteps of Virat Kohli and Anushka Sharma, renowned singer
Suryakumar T20I Captain: How did Suryakumar become Team India's captain? He revealed the four people who suggested his name.
Indian team star batsman Suryakumar Yadav created history by winning the T20 World Cup. He has become India’s third captain to win the T20 World Cup, following in the footsteps of MS Dhoni and
Tsutomu Shibayama Dies: The True Wizard of the Cartoon World Is No More—Doraemon Director Passes Away
Extremely sad news is currently emerging from the Japanese film industry. Renowned filmmaker Tsutomu Shibayama has passed away. Shibayama—the creator behind cult cartoon shows like
