The gold market is witnessing a significant downturn as prices continue to decline in New Delhi, reflecting broader economic trends influenced by global financial conditions. In recent days, gold prices have dipped below ₹83,000 per 10 grams, raising concerns among investors and consumers alike. This article explores the reasons behind the price fluctuations, current market conditions, and expert insights, helping you stay informed about gold investment trends.
Gold Prices Drop in Delhi
According to the All India Sarafa Association, sluggish demand from jewelers and retailers led to a decrease in gold prices by ₹160 to ₹82,840 per 10 grams in New Delhi. This marks the second consecutive day of falling prices, with gold having closed at ₹83,000 per 10 grams just a few days prior. Similarly, gold with 99.5% purity fell by ₹160, reaching ₹82,440 per 10 grams from the previous closing of ₹82,600 per 10 grams. Meanwhile, silver remained stable at ₹92,000 per kilogram.
MCX Gold and Silver Prices Rise
In contrast, futures contracts on the Multi Commodity Exchange (MCX) saw an uptick, with February delivery gold contracts rising by ₹327 or 0.41%, settling at ₹79,905 per 10 grams. March delivery silver futures also saw an increase of ₹190 or 0.21%, reaching ₹90,413 per kilogram. In the international market, COMEX gold futures increased by $10 to $2,776.20 per ounce, while silver traded at $30.56 per ounce, reflecting a 0.48% rise.
Reasons Behind the Decline in Gold Prices
The primary driver for the recent drop in gold prices is the strengthening of the US dollar, largely due to remarks by President Donald Trump regarding a proposed global tariff of 2.5%. Market analysts have indicated that traders are shifting their focus toward the upcoming Federal Open Market Committee (FOMC) meeting, which will significantly impact both the dollar’s strength and future gold prices. Senior commodities analyst Soumil Gandhi from HDFC Securities noted that the continued dollar strength is contributing to gold’s downward trend.
Expert Opinions on Current Market Trends
Experts are divided on the future stability of gold prices. Jatin Trivedi, VP of Research at LKP Securities, mentioned that despite the weak rupee providing some support, the strong resistance level for gold on COMEX is around $2,735, which has been crucial in maintaining its current bullish outlook. On the other hand, Devaya Giglani, Senior Research Analyst at Axis Securities, warned that the upcoming FOMC meeting, combined with new data on GDP and consumer confidence, could lead to volatility in the gold market this week.
Current Gold Price Overview
| Type of Gold | Price per 10 grams (Delhi) | Price per kg (Silver) |
|---|---|---|
| Gold 99.9% purity | ₹82,840 | ₹92,000 |
| Gold 99.5% purity | ₹82,440 |
As the market adjusts to these economic developments, staying informed and adapting investment strategies will be crucial for stakeholders in the gold sector.