Gold Drops ₹1,100 To ₹1.58 Lakh Per 10 Grams; Silver Falls ₹5,000 Amid Inflation Concerns

Mumbai: Gold and silver extended their losses on Monday as investors reacted to rising crude oil prices and growing inflationary pressures, which weakened demand for safe-haven assets.

In Delhi, gold of 99.9 percent purity declined Rs 1,100 to Rs 1,58,800 per 10 grams, inclusive of taxes. The precious metal had settled at Rs 1,59,900 per 10 grams in the previous trading session.

Silver prices also witnessed a sharp decline. The white metal slipped Rs 5,000 to Rs 2,55,700 per kg compared with Friday's closing level of Rs 2,60,700 per kg.

Crude Oil Surge Weighs On Market Sentiment

According to market analysts, the sharp rise in crude oil prices has emerged as a key concern for investors.

International crude benchmarks climbed nearly 5 percent and were trading near $97.44 per barrel. Elevated energy prices tend to fuel inflation, increasing the likelihood that central banks may maintain higher interest rates for a longer period.

Such an environment typically reduces the attractiveness of non-yielding assets such as gold.

Strong US Economic Indicators Pressure Bullion

Experts said robust economic data from the United States further affected sentiment in the bullion market.

The stronger-than-expected US employment report reinforced expectations that the US Federal Reserve could keep borrowing costs elevated for an extended period.

The outlook has strengthened the US dollar, reducing investor appetite for traditional safe-haven investments, including gold and silver.

International Markets Reflect Similar Weakness

The decline in precious metals was also evident in global markets.

Spot gold slipped almost 1 percent to USD 4,291.79 per ounce, while spot silver fell 1.34 percent to $66.93 per ounce.

Meanwhile, ongoing geopolitical tensions in West Asia continued to add uncertainty to global financial markets.

Prices Likely To Remain Volatile

Market participants expect gold and silver prices to remain volatile in the coming sessions as investors monitor upcoming US inflation data and further policy signals from the Federal Reserve.

Despite the recent correction, analysts maintain that gold remains a preferred long-term hedge against inflation and broader economic uncertainty.