Gold and Silver Plunge Amid Global Weakness and Rising Tensions

Gold and silver prices plummeted in India on Monday, tracking weakness in global bullion markets due to rising concerns over inflation and potential interest rate hikes.

The sharp decline was evident on the Multi Commodity Exchange (MCX), where gold futures fell as much as 5.59 per cent, or Rs 8,089, to hit an intra-day low of Rs 1,36,403 per 10 grams by 9:40 am.

Silver prices also tumbled, declining 6.63 per cent, or Rs 15,043, to Rs 2,11,729 per kg. However, it later traded at Rs 2,14,745, down Rs 12,027 or 5.3 per cent.

The global market saw a similar trend, with bullion prices extending their decline. Spot gold slipped 3.80 per cent to $4,320.19 per ounce, its ninth consecutive session of losses, while US gold futures dropped 4 per cent.

Analysts attributed the sharp correction in precious metals to a shift in investor sentiment, citing rising geopolitical tensions and heightened inflationary risks as key factors.