Precious metals witnessed a sharp decline on Thursday as global economic pressures weighed heavily on investor sentiment. Both gold and silver extended their losing streak following a surge in oil prices and signals from the Federal Reserve on interest rates.

Global Market Sees Steep Fall

On the New York Commodity Exchange (Comex), gold prices dropped nearly 6%, trading just above $4,600 per ounce during late trading hours. Silver saw an even steeper fall, declining close to 10% to around $70 per ounce. The sudden fall reflects growing concerns about inflation and a stronger US dollar, which typically puts pressure on precious metal prices.

Domestic Market Mirrors Global Trend

The decline was also visible in Indian markets. On the Multi Commodity Exchange of India (MCX), gold futures for April delivery slipped significantly, trading around ₹1.45 lakh per 10 grams, marking a drop of over 5%. Silver futures for May delivery also saw heavy selling, falling nearly 7% to approximately ₹2.3 lakh per kilogram.

What Triggered the Fall?

The primary factor behind the drop is the recent rally in crude oil prices, which has intensified inflation concerns worldwide. At the same time, the US Federal Reserve decided to keep interest rates unchanged, while signalling uncertainty about future economic conditions. A stronger dollar, supported by this decision, made gold and silver less attractive to investors, leading to widespread selling in the commodities market.

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Expert View

Market analysts suggest that the combination of rising oil prices, inflation worries, and stable interest rates has created a challenging environment for precious metals. As global economic uncertainty continues, gold and silver prices are expected to remain volatile in the near term.