Gold and Silver Prices Drop Sharply Across India Amid Oil Fears

Gold and silver prices dropped sharply across India, giving buyers a major relief after days of heavy price swings. Pure gold fell by 2,510 rupees per ten grams on Monday, driven down by rising crude oil prices and fears of inflation, along with expectations that the United States Federal Reserve might raise interest rates. According to the Good Returns website, 24-carat gold dropped to 1,50,170 rupees per ten grams in the Hyderabad bullion market during morning trade. The price of 22-carat gold fell by 2,300 rupees to reach 1,37,650 rupees, while 18-carat gold dropped to 1,1880 rupees. At the same time, silver prices also took a big hit, with a kilogram of silver losing 5,000 rupees to settle at 2.45 lakh rupees.

Context

Precious metal prices in India are closely linked to global economic factors like crude oil costs and currency movements. When oil prices go up, inflation worries usually push investors away from risk and toward safe assets, while changes in US interest rates directly affect how global funds move across international markets.