Gold and silver prices declined by up to 2% on Monday, 30 March, as the US-Iran war entered its fifth week with no clear end in sight. Spot gold slipped 1.38% to USD 4,462 per ounce after gaining 2.7% in the previous session. Silver also saw a drop of around 2%, trading at USD 68.3 per ounce during Asian hours.
What Is Driving The Decline?
After a sharp sell-off in recent days, some buyers are slowly returning to the gold market. Still, uncertainty remains high. A prolonged conflict could force central banks to either sell gold reserves or raise interest rates to control rising inflation, both of which can pressure prices.
Diplomatic efforts over the weekend, including talks involving Pakistan, Egypt and Saudi Arabia, failed to ease tensions. The situation on the ground remained tense, with continued strikes, power outages in parts of Tehran, and increased military activity across the region. Iran-backed Houthi forces have also joined the conflict, while the US has deployed additional troops. Iran reportedly targeted aluminium smelters in Bahrain and the United Arab Emirates.
Central Bank Moves In Focus
Gold has dropped nearly 15% since the conflict began. Interestingly, it has been moving alongside stock markets while showing an inverse trend to oil prices. Rising energy costs have raised concerns that the US Federal Reserve may hike interest rates, which typically weakens gold’s appeal as it does not offer returns like interest-bearing assets.
Turkey’s central bank sold and swapped nearly 60 tonnes of gold worth over USD 8 billion in the first two weeks of the conflict. While central banks have been consistent buyers in recent years, increased selling by countries could slow demand and add further pressure on prices.
Gold Rates In Indian Cities
City | 24K Today (1g) | 22K Today (1g) | 18K Today (1g)
Chennai | Rs 14,837 | Rs 13,600 | Rs 11,345
Mumbai | Rs 14,728 | Rs 13,500 | Rs 11,046
Delhi | Rs 14,743 | Rs 13,515 | Rs 11,061
Kolkata | Rs 14,728 | Rs 13,500 | Rs 11,046
Bangalore | Rs 14,728 | Rs 13,500 | Rs 11,046
Hyderabad | Rs 14,728 | Rs 13,500 | Rs 11,046
Kerala | Rs 14,728 | Rs 13,500 | Rs 11,046
Pune | Rs 14,728 | Rs 13,500 | Rs 11,046
Vadodara | Rs 14,733 | Rs 13,505 | Rs 11,051
Ahmedabad | Rs 14,733 | Rs 13,505 | Rs 11,051
Silver Rates In Indian Cities
City | 10 gram (Rs) | 100 gram (Rs) | 1 Kg (Rs)
Chennai | Rs 2,500 | Rs 25,000 | Rs 2,50,000
Mumbai | Rs 2,450 | Rs 24,500 | Rs 2,45,000
Delhi | Rs 2,450 | Rs 24,500 | Rs 2,45,000
Kolkata | Rs 2,450 | Rs 24,500 | Rs 2,45,000
Bangalore | Rs 2,450 | Rs 24,500 | Rs 2,45,000
Hyderabad | Rs 2,500 | Rs 25,000 | Rs 2,50,000
Kerala | Rs 2,500 | Rs 25,000 | Rs 2,50,000
Pune | Rs 2,450 | Rs 24,500 | Rs 2,45,000
Vadodara | Rs 2,450 | Rs 24,500 | Rs 2,45,000
Ahmedabad | Rs 2,450 | Rs 24,500 | Rs 2,45,000
