Oil Price Spike Triggers Gold and Silver Price Plunge in India
Gold and silver prices plummeted in India on July 24, 2026, following a significant surge in global crude oil costs. The domestic market saw gold dip by ₹400 to reach ₹1,49,200 per 10 grams, while silver fell by ₹300, settling at ₹2,29,700 per kilogram.
The sharp decline is attributed to the rise in oil prices, which often leads to concerns about higher inflation. Persistent inflation can influence central bank decisions regarding interest rates, making non-interest-bearing assets like bullion less appealing to investors.
Historically, gold has been viewed as a non-yielding asset, but when interest rate expectations are delayed or remain elevated, investors tend to shift their capital toward yield-generating assets. This movement can put downward pressure on the price of gold and silver.