Gold and silver prices witnessed a major decline on Friday as uncertainty in global financial markets increased due to the ongoing tensions involving the United States and Iran. Precious metals saw heavy selling pressure in domestic trade, with gold futures on the Multi Commodity Exchange falling by more than 1.5 per cent and silver plunging over 4 per cent. The sharp fluctuation came as investors reacted to the strengthening US dollar and concerns over global economic stability. Major Indian cities including New Delhi, Mumbai, Chennai, and Kolkata also recorded changes in retail gold prices across 24K, 22K, and 18K categories.
The decline was seen in both domestic and international bullion markets during Friday’s trading session. Gold futures for June 5 on the MCX dropped by Rs 2,478 to touch an intraday low of Rs 1,59,500, while silver futures for July 3 witnessed an even steeper fall of Rs 12,000 to Rs 2,79,102. Market analysts believe the stronger dollar index and investor uncertainty linked to geopolitical tensions between the US and Iran played a major role in the sudden decline. The impact was visible across India’s major metro cities, where gold prices fluctuated significantly.
In New Delhi, 24K gold traded at Rs 15,805 per gram, while Mumbai and Kolkata recorded Rs 15,790 per gram. Chennai continued to witness slightly higher rates compared to other cities. Experts say investors are closely monitoring international developments, currency movements, and commodity market trends, which are currently driving volatility in precious metal prices.
The latest fall in gold and silver prices highlights how global geopolitical tensions can directly affect financial markets and investor sentiment. While some buyers may see the dip as an opportunity for fresh investment, analysts warn that volatility could continue in the coming days depending on international developments and the movement of the US dollar.
