Heavy fall in gold and silver amid West Asia tension, prices fell by more than 7%, panic among investors

mumbai: Amidst increasing tension and economic uncertainties in the global market, a big fall in the prices of gold and silver was recorded on Monday. In the domestic market, the prices of both the precious metals fell by more than 7 percent, due to which the inclination of investors seemed to be changing.

There was a sharp decline in gold prices during the day’s trading. In early trade, gold opened at Rs 1,40,158, which fell to Rs 1,29,595. At present, gold is trading down with a decline of more than 7 percent.

Similar fluctuations were seen in the prices of silver. Silver fell over 7 per cent to Rs 2,09,797 per kg, while it also touched a low of Rs 1,99,643 during the day. Due to such movements, huge volatility is being seen in the market.

According to market experts, there are many big reasons behind this decline. The ongoing tension in West Asia, fear of rising inflation and the strength of the US dollar have turned investors away from gold and silver.

According to Colin Shah, MD of Cama Jewellery, the supply of crude oil has been affected due to tensions in West Asia, due to which oil prices are rising and inflationary pressure is increasing. In such a situation, the central bank can increase interest rates, which has a direct impact on the market and consumption.

At the same time, Commodity Analyst Manav Modi of Motilal Oswal Financial Services said that due to rising concerns about inflation and interest rates, there is pressure on gold. Rising tensions between the US, Israel and Iran threaten to impact global energy supplies, adding further uncertainty to the market.

Experts believe that continuously high oil prices may force central banks to take a strict stance. This makes non-interest bearing investments like gold less attractive.

Although the long-term outlook for gold still remains positive, the current situation is sure to impact the global and domestic economy. Its biggest impact can be seen especially on the gems and jewelery export sector.

Overall, this sharp fall in gold and silver prices reflects the direct impact of global economic conditions, interest rate expectations and geopolitical tensions.