New Delhi, March 23 Gold prices plummeted sharply by more than 10 per cent to ₹1.29 lakh per 10 grams in futures trade on Monday amid a global sell-off in precious metals driven by macroeconomic pressures.

On the Multi Commodity Exchange, the yellow metal dived by ₹14,897, or 10.3 per cent, to ₹1,29,595 per 10 grams. The yellow metal has now declined by Rs 63,501, or nearly 33 per cent, from its all-time high of Rs 1,93,096 per 10 grams recorded on January 29, 2026.

Analysts said the sharp fall was triggered by rising inflation fears and a surge in crude oil prices, which have clouded the global economic outlook.

Gold prices experienced a significant decline on Monday amid a sharp sell-off in precious metals, driven by rising inflation fears and a surge in crude oil prices exacerbating concerns about global economic stability, Gaurav Garg, research analyst at Lemonn Markets Desk, said.

He added that a stronger US dollar and rising bond yields have led to liquidity-driven selling, overshadowing the traditional safe-haven appeal of gold.

Last week, gold had dropped ₹13,974, or 8.82 per cent, to close at around ₹1.44 lakh per 10 grams in the domestic market.

Globally, gold futures for the April contract depreciated $474.9, or 10.4 per cent, to hit an intraday low of $4,100 per ounce. Over the past week, gold futures have plunged $486.8, or 9.6 per cent, to settle at $4,574.9 per ounce.

Gold witnessed an aggressive correction last week, plunging nearly $500, its steepest weekly drop since 1983, and is now down nearly 17 per cent over the past three weeks, Renisha Chainani, Head of Research at Augmont, said.

She noted that the sell-off has largely been driven by forced liquidation and cash raising by institutional players, particularly from the Arab Gulf region.

"In times of extreme uncertainty, investors tend to liquidate their most liquid assets first, and gold, being one of the most liquid global assets, becomes a source of funds rather than a safe-haven destination," Chainani said.

On the outlook, she added gold has broken key support levels and may see further profit-booking, though short-covering and a rebound up to $4,750 per ounce cannot be ruled out in the near term.

Published on March 23, 2026