Gold & Silver Prices Crash: Silver Plunges ₹16,500 in a Day, Gold Suffers Major Blow; Here’s What Triggered the Fall

Gold & Silver Prices Crash: The gold and silver markets witnessed a dramatic sell-off on Friday, with silver prices recording one of their steepest single-day declines in recent months. While silver plunged by more than ₹16,500 per kilogram, gold prices also suffered a significant setback, falling by nearly ₹4,000 per 10 grams.

According to market data, gold futures on the Multi Commodity Exchange (MCX) closed ₹3,947 lower at ₹1,55,600 per 10 grams, while silver futures crashed by ₹16,595 to settle at ₹2,48,201 per kilogram. The sharp decline was reflected in domestic bullion markets across major cities, including Delhi, Mumbai, and Chennai.

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Experts attribute the sudden fall primarily to stronger-than-expected employment data released in the United States. The robust jobs report signaled continued strength in the U.S. economy, boosting investor confidence and pushing both the U.S. dollar and Treasury bond yields higher.

As a result, investors moved funds away from traditional safe-haven assets such as gold and silver, leading to heavy selling pressure in precious metals. A stronger dollar also makes gold and silver more expensive for international buyers, further weighing on prices.

In the international market, gold prices fell by 3.2 percent to $4,330 per ounce, while silver witnessed an even steeper decline of 7.1 percent, dropping to $68.63 per ounce. The global weakness quickly impacted Indian bullion markets as well.

Another major factor influencing the market is the growing expectation that the U.S. Federal Reserve could raise interest rates again this year. Rising crude oil prices amid ongoing geopolitical tensions involving Iran have increased concerns about inflation. If inflation remains elevated, the Federal Reserve may opt for tighter monetary policy, including higher interest rates.

Higher interest rates generally reduce the appeal of non-yielding assets such as gold and silver, prompting investors to shift towards interest-bearing investments.

Market participants are now closely watching the upcoming Federal Reserve policy meeting scheduled for June 16–17. Analysts believe the central bank’s decision and commentary on future interest rates will play a crucial role in determining the direction of precious metal prices in the coming weeks.

Meanwhile, domestic gold prices have also eased across major cities. The price of 22-carat gold stands at ₹1,43,860 per 10 grams in Delhi, ₹1,45,525 in Chennai, and ₹1,42,752 in Mumbai, offering some relief to consumers planning fresh purchases.

However, experts caution that the current correction may not necessarily be permanent. Future movements in gold and silver prices will depend on several factors, including global economic conditions, Federal Reserve policy decisions, dollar strength, inflation trends, and geopolitical developments in the Middle East.

For now, the historic one-day decline has created significant volatility in the precious metals market, with investors and consumers closely monitoring upcoming developments before making major investment decisions.

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