Gold Crashes Rs 2,600 To Rs 1.5 Lakh, Silver Sinks Rs 5,000 Amid Global Selloff

New Delhi: Gold prices suffered a steep fall in the national capital on Monday, September 28, dropping Rs 2,600 to Rs 1.50 lakh per 10 grams as a stronger US dollar and a sharp global precious-metals selloff weighed on sentiment.

Gold of 99.9 per cent purity had settled at Rs 1,52,600 per 10 grams in the previous trading session.

Silver Slides

Silver witnessed an even sharper correction, tumbling Rs 5,000 to Rs 2.32 lakh per kilogram, inclusive of all taxes, according to local traders.

The white metal had closed at Rs 2.37 lakh per kg on Friday, extending volatility across the domestic bullion market.

Gaurav Garg, Head of Research at brokerage platform Lemonn, said gold and silver traded lower as firmness in the US dollar continued to exert pressure on precious metals.

Crude Surges

The bullion weakness came even as international crude oil prices surged amid escalating geopolitical uncertainty.

Brent crude jumped around 4 per cent to USD 108.53 per barrel as renewed US-Iran tensions and uncertainty surrounding the Strait of Hormuz intensified concerns over global oil supplies, Garg said.

In overseas markets, spot gold plunged USD 128.93, or 3.01 per cent, to USD 4,156.44 an ounce. Silver dropped USD 2.96, or 4.6 per cent, to USD 61.34 an ounce.

Hormuz Jitters

Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex, said gold slipped below USD 4,200 an ounce while silver traded near USD 61 following fresh developments involving Washington and Tehran.

US President Donald Trump rejected Tehran's proposal to reopen the Strait of Hormuz within a week and restart nuclear negotiations in exchange for lifting the naval blockade, Siddhant said.

Meanwhile, Iran said its delegation attending the UN General Assembly had no talks planned with the United States, despite Trump's statement that he expected further negotiations.

The conflicting signals added another layer of uncertainty to already volatile commodity markets.