Gold prices tumbled ₹2,600 to ₹1.5 lakh per 10 grams in the national capital on Monday, tracking a sharp selloff in global markets amid rising crude oil rates and a firm US dollar.
The yellow metal of 99.9 per cent purity had closed at ₹1,52,600 per 10 grams in the preceding session.
Silver also plunged by ₹5,000 to ₹2.32 lakh per kg, inclusive of all taxes, from Friday’s closing level of ₹2.37 lakh per kg, according to local traders.
Gold and silver prices traded lower on Monday as a firm US dollar continued to pressure the precious metals, Gaurav Garg, Head of Research at brokerage platform Lemonn.
Also Read: Sensex ends over 1,100 points, Nifty also sharply low: Why went wrong with stock market down today?
Brent crude surged 4 per cent to USD 108.53 a barrel as renewed US-Iran tensions and uncertainty around the Strait of Hormuz heightened supply concerns, Garg said.
In the overseas markets, spot gold declined USD 128.93, or 3.01 per cent, to USD 4,156.44 per ounce. Silver dropped USD 2.96, or 4.6 per cent, to USD 61.34 per ounce.
Gold slid below USD 4,200 per ounce, while silver was traded around USD 61 after US President Donald Trump rejected Tehran’s proposal to reopen the Strait of Hormuz within a week and resume nuclear talks in exchange for lifting the naval blockade, said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.
Meanwhile, Iran said that its delegation to the UN General Assembly had no talks planned with the US, after Trump claimed he expected more negotiations.