Gold Price Today: Bullion Market Sees Sharp Drop in Gold and Silver; What's Behind the Fall?

Gold and silver prices came under heavy pressure in Delhi on Monday as a stronger US dollar, rising crude oil prices and a broad selloff in global markets weighed on precious metals. Gold declined ₹2,600 to ₹1.50 lakh per 10 grams, while silver fell ₹5,000 to ₹2.32 lakh per kilogram.

The decline followed a sharp fall in international bullion markets. Gold of 99.9% purity had closed at ₹1,52,600 per 10 grams in the previous session. Silver, inclusive of applicable taxes, had ended at ₹2.37 lakh per kilogram on Friday, according to local traders.

Why did gold and silver prices fall?

A stronger US dollar was one of the main factors putting pressure on precious metals. Gold and silver are internationally traded in dollars, so a stronger US currency can make them relatively more expensive for holders of other currencies and reduce demand.

Gaurav Garg, Head of Research at Lemonn, said the firm US dollar continued to weigh on precious metals. Rising crude oil prices and heavy selling in global markets also contributed to the decline.

Gold and silver prices in international markets

The selloff was also visible in overseas markets.

Spot gold fell $128.93, or 3.01%, to $4,156.44 per ounce. Silver declined $2.96, or 4.6%, to $61.34 per ounce.

Gold moved below the $4,200-per-ounce level, while silver traded around $61 per ounce as investors reacted to developments surrounding US-Iran relations and the Strait of Hormuz.

Crude oil prices rise amid Strait of Hormuz concerns

Crude oil prices moved sharply higher as geopolitical uncertainty increased concerns about global energy supplies.

Brent crude rose around 4% to $108.53 per barrel. Market commentary cited renewed US-Iran tensions and uncertainty surrounding the Strait of Hormuz as factors increasing supply concerns.

US-Iran tensions add to market uncertainty

Market volatility also increased following developments involving Washington and Tehran.

According to market commentary cited by PTI, US President Donald Trump rejected a proposal from Tehran concerning reopening the Strait of Hormuz and resuming nuclear talks in exchange for lifting the naval blockade. Iran, meanwhile, said its delegation at the United Nations General Assembly had no talks scheduled with the US, despite Trump's comments about the possibility of further discussions.

The conflicting positions added to uncertainty in commodity markets at a time when crude oil prices were already rising.

Gold and silver price today: Key figures

Gold in Delhi: ₹1.50 lakh per 10 grams

Gold decline: ₹2,600 per 10 grams

Previous gold price: ₹1,52,600 per 10 grams

Silver in Delhi: ₹2.32 lakh per kilogram

Silver decline: ₹5,000 per kilogram

Previous silver price: ₹2.37 lakh per kilogram

Spot gold: $4,156.44 per ounce

Spot gold decline: 3.01%

Spot silver: $61.34 per ounce

Spot silver decline: 4.6%

Brent crude: $108.53 per barrel

What does the gold price fall mean for investors?

The latest decline highlights how sensitive precious metals can be to movements in the US dollar, crude oil prices, interest-rate expectations and geopolitical developments.

The immediate move in Delhi also reflected the sharp decline in international bullion prices. However, domestic gold and silver rates can differ from international prices because of currency movements, import-related costs, taxes, local demand and other market factors.