Precious metal prices experienced a sharp reversal on Thursday, with silver falling ₹9,000 to ₹2.37 lakh per kg and gold declining ₹3,500 to ₹1.51 lakh per 10 grams. According to the All India Sarafa Association, the white metal depreciated ₹9,000, or 3.66 per cent, to ₹2,37,000 per kg from Thursday's closing level of ₹2,46,000 per kg. Gold of 99.9 per cent purity also declined ₹3,500, or 2.26 per cent, to ₹1,51,500 per 10 grams, compared to the previous session's settlement of ₹1,56,000 per 10 grams. As reported by The Hindu BusinessLine, this marked a significant reversal from the previous session's gains when silver had surged ₹9,000 and gold advanced ₹3,500.
The latest decline was triggered by US President Donald Trump's much-anticipated address on the West Asia conflict, which provided limited clarity on resolving the regional tensions. According to The Hindu BusinessLine, Trump said that Washington's core strategic objectives with reference to the war could be nearing completion, but warned Tehran of potential military strikes over the next 2-3 weeks. "Precious metals declined on Thursday after US President Donald Trump's much-anticipated address provided limited clarity on resolving the conflict in West Asia," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities. This development has heightened fears of further escalation, dampening hopes of a swift resolution and prolonging disruptions to energy flows through the Strait of Hormuz.
In international markets, precious metals faced significant pressure with spot silver plummeting by $5.49, or 7.32 per cent, to $69.57 per ounce, while gold declined $166.79, or 3.51 per cent, to $4,591.52 per ounce. As reported by The Hindu BusinessLine, spot gold ended the sharp surge of three sessions as crude oil has surged yet again after Trump's warning that Iran will be hit hard in the next two-three weeks. Praveen Singh, Head of commodities at Mirae Asset ShareKhan, noted that after Trump's remarks, the US dollar gained 0.5 per cent to sustain the 99-100 level, adding pressure on the precious metal prices in overseas trade.
Despite recent volatility, precious metals have delivered exceptional returns over the past fiscal year. According to The Economic Times, in the last fiscal year 2025-26, gold prices soared by ₹57,350, or around 61 per cent, from ₹94,150 per 10 grams recorded on April 1, 2025. Silver also zoomed by ₹1,34,500, delivering more than 131 per cent returns to investors in the domestic markets. However, despite these gains, both metals ended March lower, with gold down 11 per cent and silver 20 per cent in overseas trade, as reported by Kaynat Chainwala, AVP-Commodity Research at Kotak Securities.
Looking ahead, traders will focus on key US economic releases, with the US non-farm payroll report due to be released on Friday. As reported by The Hindu BusinessLine, a robust job report will intensify the downside pressure on the yellow metal on Monday as markets will be closed tomorrow (Friday) on account of Good Friday. Despite the current decline, Chainwala noted that both metals ended March lower, with gold down 11 per cent and silver 20 per cent in the overseas trade. The overall sentiment remains cautious as gold has seen a significant drop of about 16 per cent this month, marking one of its steepest declines in decades.
