Gold Prices Plunge as US-Iran Tensions Influence Market

Gold prices in Delhi fell by Rs 1,100 to Rs 1.61 lakh per 10 grams, driven by global tensions, especially US-Iran relations. Silver also saw a sharp drop. Analysts highlight concerns over prolonged inflation and tighter monetary policies affecting precious metals negatively worldwide.

In Delhi, gold prices decreased by Rs 1,100 to Rs 1.61 lakh per 10 grams on Wednesday, affected by uncertain global conditions as tensions between the US and Iran persisted. This decline was reported by the All India Sarafa Association, with gold of 99.9% purity falling from Tuesday's price of Rs 1,62,400 per 10 grams.

Silver's value also dropped significantly, losing Rs 3,300 to settle at Rs 2,69,700 per kilogram, compared to Rs 2,73,000 per kg from the previous session. Analysts, including Commodities Expert Saumil Gandhi from HDFC Securities, attributed the fall to continued market uncertainty regarding US-Iran talks, potentially prolonging inflation concerns and affecting energy costs. Praveen Singh of Mirae Asset ShareKhan expressed that geopolitical developments are impacting sentiment in precious metals markets, with added instability from Israel's actions in Lebanon.