West Asia Conflict Fallout: Silver Plunges 9% To Rs 2.06 Lakh/Kg; Gold Futures Fall Rs 8,089 To Rs 1.36 Lakh/10g
Analysts said the sharp fall came despite escalating tensions in West Asia, as broader macroeconomic factors weighed heavily on precious metal prices.
Published : March 23, 2026 at 1:21 PM IST
New Delhi: Silver prices hit the lower circuit in futures trade, plunging 9 per cent to Rs 2.06 lakh per kilogram, and gold prices plunged sharply by Rs 8,089 to Rs 1.36 lakh per 10 grams in futures trade on Monday, tracking a global selloff amid rising inflation fears and a firm US dollar.
On the Multi Commodity Exchange, silver for May delivery slumped by Rs 20,409, or 9 per cent, to Rs 2,06,363 per kilogram, its lower circuit limit, while the yellow metal for April delivery slumped by Rs 8,089, or 5.6 per cent, to Rs 1,36,403 per 10 grams.
Analysts said the sharp fall came despite escalating tensions in West Asia, as broader macroeconomic factors weighed heavily on precious metal prices.
Silver prices have fallen sharply on Monday despite escalating West Asian tensions due to overriding macroeconomic pressures, Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said.
He added that a strong US dollar and rising Treasury bond yields have weakened bullion by increasing holding costs and making dollar-denominated metals more expensive for global buyers.
Last week, gold had dropped Rs 13,974, or 8.82 per cent, to close at around Rs 1.44 lakh per 10 grams on the commodities bourse. Analysts said the precious metal opened with a sharp gap down and is likely to extend its losing streak for the fourth consecutive week.
Gold resumed with a gap down on Monday and is likely to continue its downside momentum for the fourth consecutive week amid tensions in West Asia that have stoked inflation fears and rate hike bets in the near future, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.
In the international market, silver futures on the Comex for the May contract declined by USD 6.51, or 9.34 per cent, to USD 63.15 per ounce and gold futures for the April contract depreciated by USD 202.4, or 4.42 per cent, to USD 4,372.5 per ounce.
"Gold fell below USD 4,400 per ounce as the ongoing Middle East conflict intensified inflation fears, while major economies face pressure to boost liquidity, including through gold sales, to offset the war's impact," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said. During the past week, gold futures in overseas markets plunged USD 486.8, or 9.6 per cent, to settle at USD 4,574.9 per ounce.
Trivedi noted that gold dropped around 10 per cent as surging oil prices fuelled inflation concerns, prompting markets to price in a prolonged pause or potential rate hikes by major central banks. Makda of Choice Broking said the dollar index has remained firm above the 99 level, putting pressure on the Indian rupee, which has weakened near the 94-level against the US dollar.
Elevated crude prices and rising import costs are likely to widen India's trade deficits and stoke domestic inflation, he added. This could keep pressure on safe-haven assets such as gold in the near term, Makda said. (With agency inputs)
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