Gold and silver rate today: Gold prices fall 1.5%, Silver drops near ₹2.62 lakh per kg amid Middle East crisis

The gold and silver prices in India have opened sharply lower on Monday morning, following the weakness in the global metal prices. The global gold prices fell 1.5%, and silver prices traded 1.9% lower at $82 per oz.

The sharp jump in crude oil prices and the turmoil have sent global investors to trim their bets from equities across the globe and reallocate back to the US treasuries. Consequently, the US dollar index has jumped to 99.5 against the basket of currencies. The gold and silver prices have an inverse relationship with the dollar, as it provides a good hedge against the sharp volatility in the global markets.

On MCX, the Gold futures fell 0.7% lower at ₹1,60,277 per kg, and the silver prices fell more than 2% to trade near ₹262,694 per kg. The fall in gold and silver prices has led to dismay among investors as they look for shelter amidst the sharp selling in equities.

Crude oil futures jumped to 2022 levels after Qatar warned that Gulf oil production could stop soon. The conflict between the U.S., Israel, and Iran has disrupted the important oil shipping route through the Strait of Hormuz. Around 20% of global oil and gas inventories pass through this seaway to the rest of the world. Donald Trump has ruled out any settlement with Iran unless it accepts unconditional surrender, while Iran’s Foreign Minister Abbas Araghchi said Tehran is not seeking negotiations with Washington.

Apart from the gold and silver prices, the other precious metals like palladium and platinum, prices too have also seen selling pressure, tumbling over 3% on Monday.

In the ETFs market, the gold and silver ETFs are trading with dull activity as investors stay away from the precious metals. The goldbees traded flat at ₹130 per unit, while the Silverbees fell 0.8% on Monday.