- By Aditya Pratap Singh
- Thu, 19 Mar 2026 07:08 PM (IST)
- Source:JND
Gold, Silver Price Crash: The escalating geopolitical uncertainty and outcome of US Fed meeting triggered a sell-off in the global commodity market. The heat of the same has been felt in the domestic retail market as well, as Silver prices tanked Rs 17,800 to Rs 2.38 lakh per kilogram in the national capital on Thursday, while gold rate dropped Rs 7,000 to Rs 1.53 lakh per 10 grams.
According to the All India Sarafa Association, Silver fell by Rs 17,800, or nearly 7 per cent, to Rs 2,38,700 per kilogram (inclusive of all taxes) from last day's closing value of Rs 2,56,500 per kilogram.
Silver prices plummeted by Rs. 1,65,800 or 41 per cent from their lifetime high of Rs. 4,04,500 per kg on January 29. Meanwhile, the price of gold of 99.9 per cent purity dipped by Rs 7,000 or 4.37 per cent to Rs 1,53,300 per 10 grams as compared to the last day's closing of Rs 1,60,300 (inclusive of all taxes). Gold nosedived over 16 per cent from the all-time high of Rs. 1,83,000 per 10 grams on January 29.
Why Gold, Silver, Price Crashed
Analysts believe the sharp decline in gold prices came on the back of a drop in factors, including rising global crude oil prices, inflation concerns, and the stance of central banks on rates.
"Gold and silver prices resumed their downward trajectory on Thursday amid rising global inflation concerns, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
He said geopolitical tensions stemming from the ongoing conflict between the US and Iran have disrupted oil supplies, which could further fuel inflation.
Gold prices fell to their weakest since early February, driven by the US Federal Reserve's dovish stance, as well as a five-day outflow from gold exchange-traded funds, said Dilip Parmar, senior research analyst at HDFC Securities.
"As energy-driven inflation looms, the inflation remains a primary concern for central bankers, keeping the pressure firmly on gold as bond yields climb," Parmar noted.
Precious metals prices were also lower in foreign trade. Spot silver fell $4.88 (6.48 per cent) to $70.49 an ounce, while gold fell $140.19 (about 3 per cent) to $4,678.69 an ounce.
"Gold prices slipped below the USD 4,700 per ounce, witnessing a sharp correction of USD 100 in a single session and nearly USD 300 in the last two days, as strong macro headwinds continue to weigh on prices," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
Fed Kept Rates Unchanged
Federal Reserve Chairman Jerome Powell acknowledged on Wednesday that rising crude oil prices are contributing to inflationary pressures, but stressed that the economic impact of the conflict remains uncertain.
Powell reiterated that inflation has risen somewhat, short-term expectations for energy prices are rising, and the central bank is adopting a wait-and-see approach to see how the situation develops.
“Investors will now focus on the policy decisions of the Bank of England and the European Central Bank,” said Manav Modi, commodities analyst at Motilal Oswal Financial Services Ltd. On the outlook, Jetin Trivedi said the overall near-term trend is weak to volatile, and that the price system will continue to react strongly to developments in interest rate expectations and geopolitical cues.
(With Inputs From PTI)