Gold and silver prices in India continued to decline on Sunday under sustained pressure from the escalating conflict involving Iran and surging global crude oil prices, as investors sought to capitalise on higher energy costs.
Both precious metals recorded further losses, heading for their worst weekly declines in over a month.
The fall reflects diminished investor sentiment in precious metals, with traders concerned that sharply rising crude oil prices could lead to prolonged economic strain, reduced industrial and jewellery demand, and a potential free fall in gold and silver prices in the coming days.
On the Multi Commodity Exchange (MCX), gold closed slightly lower at Rs 144,825 per 10 grams on Friday before weekend trading halted.
The physical bullion rate in major markets stood at Rs 145,520 on Sunday. MCX silver in Delhi closed nearly 2 per cent lower at Rs 227,470 per kg on Friday, down Rs 3,990 from the previous session.
The bullion rate was quoted at Rs 227,960 on Sunday.
In addition to a stronger US dollar and expectations around Federal Reserve interest rates, the spike in crude oil is seen as a key driver of potential long-term corrections in precious metals.
The ongoing wars in Iran and Ukraine are expected to play a major role in shaping gold and silver demand throughout 2026, as prolonged geopolitical uncertainty and rising inflation exert downward pressure on both yellow and white metals.
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