Titan, Kalyan Jewellers plunge up to 12 pc after PM Modi’s appeal; gold slips amid rising West Asia tensions, silver gains

Gold prices declined while silver traded higher on Monday amid heightened geopolitical tensions in West Asia and concerns over rising crude oil prices. The volatility also triggered a sharp selloff in jewellery stocks after Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases for the next year to help conserve India’s foreign exchange reserves.

On the Multi Commodity Exchange (MCX), gold futures for June 5 opened marginally lower and later slipped Rs 638, or 0.41 per cent, to an intraday low of Rs 1,51,892 per 10 grams. In contrast, silver futures for July 3 gained over 1 per cent during early trade, touching an intraday high of Rs 2,64,922 per kg.

Commodity market experts said gold came under pressure due to a stronger dollar and elevated crude oil prices after US President Donald Trump rejected Iran’s latest response to a US-backed peace proposal. Continued tensions around the Strait of Hormuz have raised concerns over India’s import bill, trade deficit and current account deficit.

PM Modi made the appeal during a BJP public meeting in Secunderabad on Sunday, urging citizens to postpone non-essential gold purchases, avoid wasteful expenditure and reduce unnecessary fuel consumption amid the ongoing West Asia crisis.

“In the present circumstances, saving foreign exchange has become equally important for the nation,” the Prime Minister said.

He also encouraged people to adopt austerity measures similar to the Covid period, including work from home, virtual meetings, avoiding overseas vacations and promoting domestic tourism to reduce pressure on fuel imports and foreign exchange reserves.

Titan, Kalyan Jewellers plunge up to 12 pc after PM Modi’s appeal; gold slips amid rising West Asia tensions, silver gainsAI

The Prime Minister’s remarks triggered heavy selling in jewellery and gold-linked stocks. Shares of Titan Company fell over 8 per cent, while Kalyan Jewellers dropped 10 per cent. Senco Gold declined 11 per cent, while PN Gadgil Jewellers, Sky Gold and Diamonds, BlueStone Jewellery and Rajesh Exports also witnessed sharp losses.

Meanwhile, Indian equity markets remained under pressure, with Sensex and Nifty trading more than 1 per cent lower after the US and Iran failed to reach an agreement that could have eased fears of disruption in the Strait of Hormuz, keeping crude oil prices above the $100-per-barrel mark.

In international markets, COMEX gold traded over 1 per cent lower, while silver remained marginally positive. The Indian rupee also weakened sharply, falling 139 paise to 94.90 against the US dollar in early trade.