Kolkata: Gold and silver fell Monday following weakness in international prices, as a stronger dollar, amid cooling expectations of a US rate cut, weighed on precious metals. Gold in Mumbai’s spot market fell 1.3% to ₹1.58 lakh per 10 gm from ₹1.6 lakh while silver dropped 1.9% to ₹2.60 lakh per kg from ₹2.65 lakh. In the global market, spot gold fell 1.7% to $5,082.51 per ounce while spot silver slipped 2.2% to $82.50 per ounce.
Crude oil has become more attractive to global investors amid rising prices due to tensions in West Asia and they are parking funds there, said Bhargav Vaidya, an independent gold trade analyst. “Since the rupee has depreciated against the dollar, Indians are not able to get the full benefit of falling gold and silver prices in the international market.”
Despite its reputation as a crisis hedge, gold fell nearly 3% last week while silver dropped close to 10%, reflecting the complex dynamics currently shaping global markets. At first glance, the decline may appear counterintuitive since gold historically benefits from geopolitical stress. However, what markets are witnessing resembles classic crisis-driven trading behaviour.
“During periods of heightened uncertainty, investors often sell liquid assets to raise cash, meet margin calls, or reduce overall risk exposure. Since both gold and silver had rallied strongly earlier this year, they became natural candidates for profit-booking,” said Augmont Gold research head Renisha Chainani.
