Gold of 99.9% purity fell to ₹1,56,000 per 10 grams from ₹1,60,300, a drop of nearly 3%.
Silver slid to ₹2,45,700 per kg from ₹2,55,700, down about 4%.
Market participants said the fall was driven by a jump in US-Iran tensions, higher crude prices and inflation worries.
Gold prices slumped by ₹4,300 to ₹1.56 lakh per 10 grams while silver crashed by ₹10,000 to ₹2.45 lakh per kg in the national capital on Wednesday as a fresh jump in crude oil rates and a strong US dollar weakened demand for the precious metals.
According to local marketmen, gold of 99.9% purity depreciated by ₹4,300, or nearly 3%, to ₹1,56,000 per 10 grams (inclusive of all taxes) against the last close of ₹1,60,300 per 10 grams.
Silver prices plunged by ₹10,000, or 4%, to ₹2,45,700 per kg (inclusive of all taxes) from the previous closing level of ₹2,55,700 per kg.
1 June 2026
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Gold prices staged a sharp reversal on Wednesday due to a fresh escalation in US-Iran geopolitical tensions that sent crude oil surging past USD 90 per barrel and strengthened the dollar, Rajkumar Subramanian, Head of Product & Family Office, PL Wealth, said.
He said that a spike in energy prices has rekindled worries over sticky inflation and a prolonged period of elevated interest rates, reducing the attractiveness of precious metals.
In the international markets, spot gold declined by $90.53, or 2.13%, to $4,168.99 per ounce and silver traded 2.24% lower at $63.87 per ounce.
"Gold and silver prices dropped in the overseas markets. The pullback in both precious metals was driven by a stronger dollar and rising US Treasury bond yields, which dampened the appeal of these bullion amidst ongoing geopolitical tensions and inflation concerns," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
