Gold prices have recently experienced a noticeable decline, dropping by ₹900 in just two days. This sudden shift can be attributed to weak demand from jewelry traders and increased selling pressure from investors. As of Friday, the price of gold in the national capital’s bullion market fell by ₹500 to reach ₹87,700 per 10 grams, marking a remarkable low not seen in two weeks. In comparison, the previous closing price for 99.9% pure gold stood at ₹88,200 per 10 grams. This article explores the current trends in gold and silver pricing, the impact of global factors such as the US dollar index, and offers insights into market predictions.
Recent Trends in Gold Pricing
This year has seen a significant increase of ₹8,310 in gold prices, climbing from ₹79,390 per 10 grams at the start of January to the current rate of ₹87,700 per 10 grams. The price for 99.5% pure gold has also seen a decline, dropping by ₹500 to ₹87,300 per 10 grams, down from the previous closing rate of ₹87,800 per 10 grams.
| Type of Gold | Price (per 10 grams) | Change |
|---|---|---|
| 99.9% Pure Gold | ₹87,700 | -₹500 |
| 99.5% Pure Gold | ₹87,300 | -₹500 |
Drop in Silver Prices
Silver prices are also on a downward trend, plummeting by ₹2,100 to ₹96,400 per kilogram, a significant drop following three consecutive days of devaluation. The previous closing price for silver was ₹98,500 per kilogram. Rahul Kalantari, Vice President (Commodities) at Mehta Equities Limited, has attributed this decline to a strong rebound in the dollar index. Additionally, uncertainty surrounding new tariffs on trade with Mexico and Canada announced by the US President is putting further pressure on bullion prices.
Global Market Impact
Market experts indicate that further developments, such as President Trump’s announcement of an additional 10% tariff on China, have dampened hopes for a delay in these tariffs. On a global scale, COMEX gold futures fell by $21.20 to reach $2,874.70 per ounce, while spot gold dropped by $15 to settle at $2,862.53 per ounce.
Influence of the Dollar on Gold Prices
According to Chintan Mehta, CEO of Ebens Holdings, a stronger US dollar is creating an environment for gold price adjustments. This development signals that the US Federal Reserve may delay interest rate cuts due to ongoing inflationary pressures in the economy. In the Asian markets, COMEX silver futures are trading down 1.21% at $31.72 per ounce.
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