Gold and silver prices on the Multi Commodity Exchange (MCX) fell sharply on Monday, even though tensions in West Asia are still high. Normally, such situations increase demand for safe investments like gold, but this time prices have dropped instead.
Gold futures for April 2 delivery fell by about 5.64%, dropping ₹8,143 to ₹1,36,349 per 10 grams. Silver futures also saw a big decline, falling ₹17,665 or 7.79% to ₹2,09,107 per kilogram.
Market expert Arun Kejriwal said this situation is unusual. He explained that in his 30–35 years of experience, he has rarely seen such different market behaviour during a crisis. According to him, the current trend is making investors nervous.
Usually, gold is considered a safe investment during global tensions. However, since the recent military actions involving the United States and Israel against Iran, gold prices have been falling every week.
Experts from Axis Securities said that several factors are putting pressure on gold prices. These include rising US Treasury yields, a stronger US dollar, and investors selling gold to cover losses in other markets.
They also added that increased military activity in the region has made traders expect possible interest rate hikes. There is now a 50% chance that the Federal Reserve may raise interest rates by October. Additionally, the European Central Bank and the Bank of England are also expected to increase rates several times in 2026.
Higher interest rates usually make gold less attractive, as investors may prefer other options that give better returns. This is one of the main reasons why gold and silver prices are falling despite global uncertainty.
Overall, the market is showing unusual trends, and investors are closely watching global developments to understand where prices may move next.