New Delhi: Gold and silver prices saw a sharp fall in the national capital on Tuesday as global bullion markets came under pressure due to a stronger US dollar and growing concerns over higher US interest rates.
Gold fell by Rs 3,000, while silver recorded a much steeper decline of Rs 10,500, reflecting heavy selling in precious metals.
Sharp Decline
According to the All India Sarafa Association, gold of 99.9 percent purity dropped 2 percent to Rs 1,49,300 per 10 g, including all taxes.
This is the lowest level seen in nearly three months. Gold was last around this level on March 27, when prices stood at Rs 1,47,800 per 10 g.
Silver also remained under strong pressure.
The white metal plunged 4.3% to Rs 2,35,000 per kg, marking its lowest level in more than two months.
Dollar Impact
Market experts said the biggest reason behind the fall was the strong rise in the US dollar.
A stronger dollar usually makes gold and silver more expensive for global buyers, reducing demand and putting pressure on prices.
The dollar index rose for the sixth straight session and touched 101.15, its highest level since May 2025.
Analysts said traders increasingly expect another interest rate hike by the US Federal Reserve.
Higher interest rates reduce the appeal of non-yielding assets such as gold and silver.
Global Pressure
In international markets, spot gold fell nearly 2 percent to USD 4,121.10 per ounce.
Silver declined more sharply, slipping more than 4 percent to USD 62.27 per ounce.
Experts said bullion may remain volatile in the near term.
Investors are now closely watching upcoming US economic data and speeches by Federal Reserve officials, which could provide fresh clues on future rate decisions and market direction.
