New Delhi/Patna: Gold and silver prices recorded a sharp decline on March 19, reflecting a shift in investor sentiment despite ongoing geopolitical tensions in the Middle East.
According to data from the India Bullion and Jewellers Association (IBJA), the price of silver fell by Rs 13,000 per kilogram to Rs 2.37 lakh, down from Rs 2.50 lakh on March 18. Gold prices also saw a notable drop, with 24-carat gold declining by Rs 4,000 to Rs 1.52 lakh per 10 grams.
Over the past five trading sessions, gold prices have fallen by Rs 9,000 and silver by Rs 31,000, marking a reversal from the typical trend where precious metals rise during periods of global conflict.
Market analysts attribute the decline to a combination of factors. Investors, facing heightened uncertainty due to tensions between the US and Iran, have been liquidating holdings in gold and silver to increase cash reserves. This shift towards liquidity has added downward pressure on prices.
Profit booking has also played a role, with prices having reached record highs earlier this year. Large investors have been selling at elevated levels, increasing supply in the market and contributing to the correction.
Additionally, the US Federal Reserve’s hawkish stance on interest rates has dampened the appeal of non-yielding assets such as gold and silver. Higher interest rates tend to strengthen the dollar, making precious metals less attractive to investors.
Commodity experts suggest that the downward trend may continue in the near term. Some analysts have indicated that gold could fall further towards Rs 1.50 lakh per 10 grams, while silver may stabilise around current levels.
The recent decline highlights the complex interplay between geopolitical risks, monetary policy and investor behaviour in shaping commodity markets.
