Silver Crumbles: ₹12,000 Drop in Two Days; Gold and Crude Prices Plummet

Gold and Silver Rates: Several commodities experienced significant price drops on Friday. On the MCX, gold prices fell by ₹2,000, while crude oil prices saw a 7% decline. Silver prices plummeted by ₹12,000 per kg over two days.

Gold-Silver Rate: Fears of a global recession have intensified, driven by US tariffs and retaliatory measures from countries like China and the EU, targeted by Trump. This has raised concerns about a decline in industrial demand for base metals, including silver. On Friday, silver prices on MCX plummeted by ₹7200 per kilogram, closing at ₹87,270. This marks the single largest daily drop in silver prices. Globally, silver prices fell by 7.5%, settling at $29.5 per ounce. In India, silver price has decreased by over ₹12,000 per kilogram in just two days. On April 2nd, it closed at ₹99,753, while on March 28th, it reached an all-time high of ₹1,00,2040 on MCX.

Gold Also Slides

On MCX, the price of 10 grams of gold also dropped by over ₹2000, settling at ₹87,950. This is the first time that the price of one kilogram of silver on MCX is lower than that of 10 grams of gold. In the global market, gold prices have fallen by over $180 per ounce in two days. Gold prices in the bullion markets also fell by ₹1000 to ₹1500. In Jaipur, 10 grams of 24-carat gold fell to ₹92,800, while silver dropped by ₹4500 to ₹96,000. Meanwhile, in Indore, silver prices decreased by ₹6,000 per kilogram.

Crude Oil Down 14%

Driven by recession fears and OPEC’s announcement to increase production, crude oil prices fell by 7%, closing below $65 per barrel. In two days, crude oil prices have dropped by 14%, nearing 2021 lows when prices fell to $40 per barrel. The decline in crude oil and dollar prices strengthened the rupee by 22 paise against the dollar on Friday, closing at ₹85.25. The cheaper crude oil and stronger rupee are expected to benefit the Indian economy, which imports 80% of its crude oil.