Precious Metals Dive as Inflation and Geopolitical Tensions Weigh Heavily

In a dramatic downturn, silver prices plummeted by Rs 17,800 to Rs 2.38 lakh per kilogram in the national capital, while gold prices slipped by Rs 7,000 to Rs 1.53 lakh per 10 grams. The sharp decreases followed a significant selloff in global commodity markets.

The All India Sarafa Association reported silver's nearly 7% slump to Rs 2,38,700 per kg, marking a drastic fall from its record high of Rs 4,04,500 per kg in January. Gold, at 99.9% purity, fell by 4.37% to Rs 1,53,300 per 10 grams, having dropped from its peak of Rs 1,83,000 per 10 grams earlier this year.

Analysts point to rising global inflation concerns and the hawkish policies of central banks, notably the US Federal Reserve and the Bank of Japan, as key factors behind the downturn. Geopolitical tensions, especially the conflict involving the US and Iran, are also heightening fears of oil supply disruptions and contributing to inflationary pressures, further impacting metal prices.