Silver crashes Rs 17,800/kg, gold dives to Rs 1.53 lakh/10 gms on global selloff

New Delhi: Silver prices tanked Rs 17,800 to Rs 2.38 lakh per kilogram in the national capital on Thursday, while gold dropped Rs 7,000 to Rs 1.53 lakh per 10 grams following a sharp selloff in global commodity markets.

According to the All India Sarafa Association, the white metal slumped by Rs 17,800, or nearly 7 per cent, to Rs 2,38,700 per kg from Wednesday’s closing level of Rs 2,56,500 per kg.

Silver has now declined sharply by Rs 1,65,800 per kilogram, or 41 per cent, from its lifetime high of Rs 4,04,500 per kg recorded on January 29.

Gold of 99.9 per cent purity also plunged by Rs 7,000, or 4.37 per cent, to Rs 1,53,300 per 10 grams from the previous close of Rs 1,60,300 per 10 grams.

The yellow metal had fallen by Rs 29,700, or 16.23 per cent, from its all-time high of Rs 1,83,000 per 10 grams recorded on January 29.

Analysts attributed the steep fall in bullion prices to a combination of factors, including rising inflation concerns, hawkish central bank stances, particularly from the US Federal Reserve and the Bank of Japan, amid surging global crude prices.

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 added that geopolitical tensions stemming from the ongoing conflict between the US and Iran, leading to fears of oil supply disruptions that could further fuel inflation.

Precious metal prices also traded lower in the overseas trade. Spot silver tumbled by $4.88, or 6.48 per cent, to $70.49 per ounce, and gold declined $140.19, or nearly 3 per cent, to $4,678.69 per ounce.