Mumbai, March 26: On the occasion of Ram Navami, gold and silver prices have witnessed a substantial decline in the domestic futures market. This drop is attributed to increasing pressure in the international market and a strong US dollar. As trading commenced on the Multi Commodity Exchange (MCX) at 5 PM, gold prices fell by approximately 2.43%, decreasing by ₹3,064 to reach around ₹1,40,830 per 10 grams. Silver prices experienced an even more significant decline, plummeting by nearly 5.88%, or ₹14,000, to settle at ₹2,24,605 per kilogram.
Spot Gold Drops by 2.63%
In the global market, gold prices also saw a decline, with spot gold on Comex falling by about 2.63% to $4,432 per ounce. The primary reason for this market downturn is the strength of the US dollar, which remained above the 94 mark on Thursday. A stronger dollar makes gold more expensive, impacting its demand. Silver prices in the global market also faced a significant drop, with spot silver decreasing by approximately 4.20% to $69.59 per ounce.
Expert Opinions
Experts suggest that geopolitical tensions related to Iran and fluctuations in the crude oil market are affecting the global investment environment. Additionally, the strength of the US dollar has weakened the demand for safe-haven investments like gold and silver. Analysts indicate that macroeconomic factors, such as changes in interest rates, the dollar index, and global economic uncertainty, are currently pressuring precious metals. They believe that until international conditions stabilize and the dollar weakens, fluctuations in gold and silver prices are likely to continue.
Positive Outlook for Silver
Recently, silver prices have shown some strength. According to the Indian Bullion Jewellers Association (IBJA), the standard price of silver rose by 4.57% to ₹2,34,814 per kilogram in the evening session on March 25. IBJA analysts attribute this increase in silver prices to positive signals from the global market. A weaker dollar and improved macroeconomic indicators have supported silver. IBJA Vice President Aksha Kamboj stated that the positive global sentiment is contributing to the bullish trend in silver, alongside rising expectations for industrial use. While fluctuations may occur in the market, the overall sentiment remains cautiously optimistic, supported by positive economic indicators.
Deependra Singh Chundawat is a Senior Sub-Editor at Udaipur Kiran, specializing in a wide range of technology topics including mobile phones, applications, gaming, PCs, and wearables. Along with covering the latest tech news, he also creates engaging web stories. Passionate about emerging technologies, he stays up to date with the newest trends and enjoys reading and writing about the latest mobile launches and digital innovations.
