Gold and Silver Prices Tumble Amid Global Geopolitical Tensions

Gold prices fell below Rs 1 lakh per 10 grams due to weak global cues and increased selling. Silver also declined, driven by investor position liquidation amid geopolitical tensions between Israel and Iran. Domestic factors like rupee weakness prevented further losses, while global trade and conflict developments could influence future volatility.

Gold prices have slipped below the significant Rs 1 lakh-mark, falling by Rs 600 to reach Rs 99,960 per 10 grams in India's capital. The decline was attributed to selling by jewellers and stockists reacting to weak global cues, as reported by the All India Sarafa Association.

Similarly, silver prices dropped by Rs 2,000 to Rs 1,05,200 per kilogram, marking its first weekly decline in three weeks. The recent downturn in the precious metals market comes amid heightened geopolitical tensions between Israel and Iran, prompting investors to liquidate bullion positions.

Despite a back-to-back drop in gold and silver prices, the ongoing conflict and domestic currency weakness could still support prices. Analyst Jateen Trivedi suggests that any de-escalation in Middle East tensions or US non-involvement could further pressurize prices.

(With inputs from agencies.)