Gold and silver prices witnessed a sharp decline on the Multi Commodity Exchange (MCX) as trading opened on Monday. Despite rising geopolitical tensions, both precious metals slipped significantly in early trade before showing signs of recovery later in the session.

Sharp Drop in Silver Prices

Silver prices recorded a steep fall at the opening of the trading week. After closing at ₹2,32,495 per kg last Thursday, silver futures dropped to ₹2,29,651 per kg on Monday—marking a sharp decline of over ₹2,800 per kg.

The metal has also fallen drastically from its lifetime high of ₹4,39,337 per kg and is currently trading significantly lower, reflecting ongoing volatility in the commodity market.

Gold Prices Also See Decline

Gold followed a similar trend, declining in early trade. Gold futures, which had closed at ₹1,49,680 per 10 grams last week, opened at ₹1,48,298 per 10 grams on Monday—down by more than ₹1,300.

Compared to its all-time high of ₹2,02,984 per 10 grams, gold prices have dropped by over ₹54,000, indicating a notable correction in recent times.

Partial Recovery After Initial Fall

After witnessing losses for nearly two hours, both gold and silver prices showed signs of recovery. Silver rebounded by around ₹600, while gold also moved into the green zone, indicating buying interest at lower levels.

Why Are Prices Falling Despite Global Tensions?

The decline comes even as global tensions escalate, particularly following renewed threats by Donald Trump regarding potential action against Iran.

Typically, precious metals like gold and silver rise during geopolitical uncertainty. However, in the current scenario, rising crude oil prices—hovering around $110 per barrel—have increased inflation concerns, putting pressure on metal prices.

Additionally, a stronger US dollar and investor preference for holding cash have further limited gains in gold and silver.

What Investors Should Watch

Market experts advise investors to closely track global economic cues, currency movements, and inflation trends before making investment decisions in precious metals. While current prices have dipped, volatility is expected to continue in the near term.