Gold drops over ₹3,500 per 10 grams in India, silver tumbles ₹9,031 per kg amid Fed, oil concerns

Gold and silver prices witnessed a sharp decline on Thursday, with both metals slipping significantly amid global macroeconomic pressures. On the Multi Commodity Exchange, gold futures for April delivery dropped by ₹3,616, or 2.36%, settling at ₹1.49 lakh per 10 grams, while silver futures for May delivery plunged by ₹9,031, or 3.64%, to ₹2.39 lakh per kilogram, marking the seventh consecutive session of losses for the white metal.

The downturn in precious metals was largely driven by a strengthening US dollar, elevated US Treasury yields, and a hawkish stance from the US Federal Reserve. Analysts said persistent inflation concerns, supported by rising crude oil prices, have reduced expectations of near-term interest rate cuts, thereby weakening the appeal of gold and silver as safe-haven investments.

In global markets, gold futures for April delivery fell by $120.84, or 2.47%, to $4,775 per ounce, while silver futures declined by $4.89, or 6.31%, to $72.69 per ounce. The surge in crude oil prices beyond $110 per barrel, triggered by escalating geopolitical tensions, further added to inflation worries and exerted additional pressure on bullion prices.

The US Federal Reserve’s decision to hold interest rates steady while signalling a cautious approach towards easing has reinforced the “higher-for-longer” rate outlook. This has tightened liquidity conditions and weighed on investor sentiment in the commodities market, limiting any recovery in precious metals.

Analysts believe that the combination of high energy costs, geopolitical uncertainty, and restrictive monetary policy is likely to keep gold and silver prices under pressure in the near term, with continued volatility expected across global markets.