Gold prices in India crashed to ₹14,017 per gram for 24-karat on Monday, marking the precious metal’s worst weekly percentage drop since 1983. Silver also experienced a plunge of ₹14,000, bringing rates down to ₹2,30,000 per kilogram across major cities including Pune and Gurgaon.
The massive selloff in traditional safe-haven assets is driven by escalating geopolitical tensions, following a reported 48-hour ultimatum issued by US President Donald Trump to Iran. Threats of strikes on global energy infrastructure have disrupted the Strait of Hormuz, spiking crude oil prices and fueling a broader global market rout.
Market Carnage And Local Rates
In Delhi, 22-karat gold fell to ₹12,850 per gram. In Mumbai and Bengaluru, 24-karat gold is currently trading at ₹14,002 per gram. The macroeconomic shock is not isolated to commodities, as global markets absorbed the impact of the geopolitical crisis. The BSE Sensex plummeted over 1,800 points today, erasing ₹11 lakh crore in market capitalization, while the Indian Rupee tumbled to a record low of 93.94 against the US dollar.
The disruption at the Strait of Hormuz, a critical maritime transit route handling 20% of global oil, has kept inflation and interest rates elevated. The Wall Street Journal and Bloomberg confirmed the magnitude of the gold decline, citing it as the most severe drop in over 40 years.
Analyst Guidance For Investors
Financial analysts are issuing advisories urging investors to avoid panic selling amid the market gaps. As of 12:44 PM Indian Standard Time, mutual fund distributor Abhishek Bhilwaria recommended that investors maintain systematic investment plans.
Bhilwaria advised that continuing these plans allows investors to benefit from rupee cost averaging, rather than attempting to perfectly time the market bottom during the ongoing volatility.