Indian Precious Metals Plunge Amid Global Risk-Off Wave
India's precious metal markets have been battered by a sharp spike in US Treasury yields and soaring crude oil prices, leading to a severe risk-off wave across domestic and international exchanges.
The sudden market correction was catalyzed by escalating geopolitical tensions in the Middle East, which pushed Brent crude toward the USD 100 per barrel mark. Combined with robust US employment data, the energy shock has amplified concerns that stubborn inflation will compel the US Federal Reserve to maintain high interest rates for longer.
MCX gold futures suffered a sharp drop of ₹1,200, slipping below psychological thresholds to trade near ₹1,54,300 per 10 grams. Silver contracts on the MCX mirrored the downward trajectory, plunging ₹3,500 to hover under pressure near ₹2,37,500 per kilogram.
Even traditional safe-haven assets failed to hold their ground, leaving investors scrambling as liquidity tightened globally.