Gold and Silver Prices Plummet as US Dollar Strengthens

Gold and silver prices plummeted on Monday in India, prompting potential buyers to wait for further declines before making purchases. The correction has made gold more affordable, but jewellers say buyers are unlikely to rush into buying until prices show signs of stabilizing or recovering.

Silver futures for September delivery fell by ₹6,661 to ₹2,28,035 per kg on MCX, while gold futures for October delivery slipped 3,214 to ₹1,47,667 per 10 grams. The selloff was attributed to the strengthening of the US dollar, higher US yields, and uncertainty over the US-Iran war.

Surendra Mehta, secretary of the India Bullion & Jewellers Association, said that buying typically happens in a rising market, not a falling one, due to fear of further decline. Unless prices start moving up, festive season buying is unlikely to pick up.