Global markets have been shaken by the ongoing conflict between Iran and Israel. While stock markets are falling, it is surprising that gold and silver usually seen as safe investments, have also dropped sharply.
Since the war began, gold prices have fallen by about Rs 11,208 per 10 grams. Silver has seen an even bigger drop of around Rs 38,027 per kilogram. On Thursday, prices continued to fall in the bullion market.
24-carat gold dropped by Rs 6,990 to Rs 1,47,889 per 10 grams, while silver fell by Rs 20,034 to Rs 2,29,873 per kilogram.
According to data from Indian Bullion and Jewellers Association, on 27 February 2026, gold was priced at Rs 1,59,097 and silver at Rs 2,67,900. The war started the next day, and prices have been declining since then. This shows a clear shift in the usual market trend.
Why Are Gold Prices Falling?
Several factors are behind the decline:
- Trading has become more expensive due to higher margins, reducing speculation.
- Investors are selling gold to recover losses from the stock market.
- After a strong rally earlier, new investment in gold has slowed.
- A strong US dollar has reduced global demand for gold.
- Market behaviour has changed, instead of buying gold during war, investors are selling it to raise cash.
Should You Buy Gold Now?
According to market expert Ajay Kedia, he told Live Hindustan, short-term traders should be careful, as prices may remain volatile or fall further. However, for long-term investors, this could be a good opportunity to buy gradually. Gold is still considered a safe investment over time.
Investment Strategy:
- Do not invest all your money at once.
- Buy in small amounts over time (SIP method).
- Increase investment slowly when prices fall.
- Avoid high risk in the short term.
What Lies Ahead?
Future gold prices will depend on several factors:
- Interest rate decisions by the US Federal Reserve
- Movement of the US dollar
- Tensions in the Middle East
- Inflation levels
The fall in gold prices offers an opportunity, but investors should avoid rushing in. Long-term investors may consider buying gradually, while short-term investors may prefer to wait.
Other precious metals showed slight gains, with platinum and palladium rising modestly, tracking broader commodity resilience even as gold markets faced pressure from tightening financial conditions.
After hitting highs earlier in 2026, prices of both gold and silver have fallen sharply in recent days.
Ongoing US-Iran tensions and the Strait of Hormuz disruption provided some support to gold prices, as investors weighed safe-haven demand against the impact of a solid dollar.
Silver prices saw marginal gains near USD 73 per ounce, supported by industrial demand optimism, though broader precious metals sentiment remained cautious amid persistent strength in the US dollar.
Silver prices saw marginal gains near USD 73 per ounce, supported by industrial demand optimism, though broader precious metals sentiment remained cautious amid persistent strength in the US dollar.
Spot silver fell 1.7% to $71.66 per ounce, reflecting continued volatility in precious metals amid shifting global cues and profit booking.
Gold prices are falling because of strong US dollar and high interest rates.
Gold has fallen over 6% in a week and over 10% since late February.
After hitting highs earlier in 2026, prices of both gold and silver have fallen sharply in recent days.
Silver prices are rising sharply amid global uncertainty, with strong safe-haven demand and industrial use pushing rates to new highs.
Ongoing US-Iran tensions and the Strait of Hormuz disruption provided some support to gold prices, as investors weighed safe-haven demand against the impact of a solid dollar.
Expectations of prolonged tight monetary policy by the US Federal Reserve continued to pressure gold, as higher interest rates reduce the appeal of non-yielding assets like bullion.
Other precious metals showed slight gains, with platinum and palladium rising modestly, tracking broader commodity resilience even as gold markets faced pressure from tightening financial conditions.
Rising crude oil prices due to Strait of Hormuz tensions are fueling inflation concerns, which typically support gold, but high interest rates continue to limit its attractiveness.
Silver prices saw marginal gains near USD 73 per ounce, supported by industrial demand optimism, though broader precious metals sentiment remained cautious amid persistent strength in the US dollar.
Despite a mild rebound in spot gold and futures, bullion has dropped over 7% this week, reflecting sustained selling pressure driven by macroeconomic headwinds and elevated US yields.
Gold prices edged higher Friday but stayed on track for a third weekly fall, as a strong dollar and hawkish Federal Reserve stance reduced expectations of imminent interest rate cuts.
22 carat gold remains steady around Rs 13,774 per gram. Market movement is minimal, with only slight changes observed across different purity levels today.
Silver prices recorded a small drop today. The metal is priced at Rs 259.90 per gram, down by Rs 0.10, showing limited movement in the market.
The price of 24 carat gold declined marginally today. It now stands at Rs 15,027 per gram, reflecting a minor decrease compared to the previous session.
Gold prices slipped slightly, with 24 carat gold at Rs 15,027 per gram, down by Rs 1. Silver also edged lower to Rs 259.90 per gram.
