Gold prices witnessed a sharp decline on the Multi Commodity Exchange (MCX) on Monday, dropping by Rs 1,000 per 10 grams, as rising crude oil prices dampened investor sentiment. Silver also took a hit, falling by 1.6%, tracking global trends and a stronger US dollar.
Factors Behind the Decline
The primary driver for the fall in precious metals was the surge in crude oil prices, which raised concerns about inflation and potential interest rate hikes. Additionally, the US dollar strengthened against major currencies, making dollar-denominated assets like gold less attractive to investors holding other currencies.
City-Wise Gold Rates
Here are the latest gold rates (per 10 grams of 24-carat) in major Indian cities:
- Delhi: Rs 71,500
- Mumbai: Rs 71,350
- Chennai: Rs 71,600
- Kolkata: Rs 71,400
- Bengaluru: Rs 71,450
- Hyderabad: Rs 71,500
- Ahmedabad: Rs 71,300
Silver Prices
Silver also declined sharply, with MCX silver futures for May delivery trading at Rs 82,500 per kg, down 1.6% from the previous close. The white metal was affected by the same factors as gold, including a stronger dollar and rising bond yields.
Market Outlook
Analysts suggest that gold and silver prices may remain under pressure in the near term if crude oil continues to rise and the dollar maintains its strength. However, any escalation in geopolitical tensions or a slowdown in economic growth could reverse the trend. Investors are advised to monitor global cues and central bank policies for further direction.
