Gold Slumps Below Rs 1.5 Lakh, Silver Plunges Rs 5,000 Amid Oil Surge And Strong Dollar

Gold and silver prices came under heavy pressure on Monday as a stronger US dollar, a sharp rise in crude oil prices and renewed tensions involving the US and Iran triggered a broad selloff in global precious metals.

In the national capital, gold of 99.9 per cent purity fell Rs 2,600 to Rs 1.50 lakh per 10 grams, compared with Rs 1,52,600 in the previous session. Silver suffered an even steeper decline, plunging Rs 5,000 to Rs 2.32 lakh per kg, including all taxes, from Rs 2.37 lakh on Friday.

The decline tracked weakness in international markets. Spot gold fell 3.01 per cent, or USD 128.93, to USD 4,156.44 per ounce, while silver dropped 4.6 per cent to USD 61.34 per ounce.

A firm dollar has made dollar-denominated precious metals more expensive for buyers holding other currencies, adding to selling pressure. At the same time, crude oil prices jumped sharply, with Brent crude rising about 4 per cent to USD 108.53 a barrel.

According to market analysts, renewed US-Iran tensions and uncertainty over the Strait of Hormuz have raised concerns about possible disruptions to global oil supplies. The resulting jump in crude prices has added another layer of uncertainty for investors.

Gold slipped below the USD 4,200-per-ounce mark, while silver traded around USD 61, amid heightened geopolitical uncertainty. The pressure intensified after US President Donald Trump rejected Tehran's proposal to reopen the Strait of Hormuz within a week and resume nuclear talks in exchange for lifting the naval blockade.

Iran, meanwhile, said its delegation attending the UN General Assembly had no talks scheduled with the US, despite Trump's claim that he expected further negotiations.

The combination of a stronger dollar, surging oil prices and geopolitical uncertainty weighed on bullion, leading to one of the sharpest single-day declines in domestic gold and silver prices in recent trading.