In a surprising twist amid Middle East flare-ups, India’s precious metals market saw a dramatic sell-off on Wednesday. According to the India Bullion and Jewellers Association (IBJA), 999 purity gold closed at Rs 1,54,879 per 10 grams, a Rs 789 drop from Tuesday’s Rs 1,55,668. Silver, meanwhile, cratered to Rs 2,49,907 per kg, shedding Rs 2,433 from Rs 2,52,340.
This week’s losses are staggering: gold is down nearly Rs 4,000 per 10 grams since Friday, and silver has lost about Rs 10,000 per kg. The MCX amplified the rout, with April gold futures declining 2.17% (Rs 3,385) to Rs 1,52,600 by 7:19 PM. May silver dropped 2.34% (Rs 5,913) to Rs 2,47,200.
Trading sessions were rollercoasters. Gold started at Rs 1,55,658, hit Rs 1,56,075, then sank to Rs 1,51,550. Silver opened at Rs 2,51,498, climbed to Rs 2,54,897, and plunged to Rs 2,42,803 per kg.
Experts remain cautiously optimistic. ‘The 1,56,000-1,57,000 band acts as robust demand support for gold,’ noted one analyst. Holding above this could sustain upward momentum, with a push past Rs 1,65,000 targeting Rs 1,75,000-1,80,000.
West Asian tensions, including US-Iran rhetoric and Hormuz Strait blockade fears, have roiled global sentiment. Yet, a robust dollar and oil price swings are capping precious metals’ appeal. The petro-dollar system’s reinforcement is driving gold, oil, and USD in opposing directions, creating this unusual bearish pressure on bullion.
As markets digest these shifts, physical buyers might find value in the dip, while futures traders brace for more volatility tied to international headlines.