The gold market in India, particularly in the capital city of Delhi, has witnessed an extraordinary surge in prices, reaching record levels that have captured the attention of both investors and the general public. While the prices of gold are soaring in Delhi, the futures market on the Multi Commodity Exchange (MCX) shows a contrasting trend with significant volatility. Understanding these movements is crucial for investors and those interested in the precious metals market, especially in the context of gold and silver pricing trends.
Record Gold Prices in Delhi
On Thursday, the price of gold in Delhi saw an increase of ₹200, reaching a new record level of ₹94,350 per 10 grams. This rise comes after the price was stable at ₹94,150 per 10 grams for 99.9% pure gold on Wednesday. Meanwhile, gold with 99.5% purity climbed to ₹93,900 per 10 grams, marking an all-time high. In contrast, silver’s price fell to ₹100,500 per kilogram, down by ₹1,000 from Wednesday’s closing of ₹101,500 per kilogram. This marks the third consecutive day of decline for silver, cumulatively dropping ₹2,500 over three days.
Futures Market Volatility
In the futures market, significant fluctuations were observed for gold and silver prices. During trading, gold prices dropped by ₹2,001 per 10 grams, leading to a price of ₹88,727 per 10 grams. By the evening, gold traded at ₹90,558, showing a decline of ₹170. Furthermore, silver saw an even steeper drop, reaching ₹93,875, a decrease of ₹5,878, with evening trading showing a further decline of ₹4,643, stabilizing at ₹95,110.
Expert Opinions on Market Trends
Analysts provide insights into the ongoing market dynamics. Jatin Trivedi, Vice President of Research at LKP Securities, noted that initial gains in gold prices during the morning session were quickly followed by a phase of profit-booking. Internationally, the spot gold prices fell by $43.39 or 1.38% to reach $3,089.64 per ounce, after briefly peaking at $3,167.71 per ounce following announcements of tariffs by President Donald Trump on over 60 countries.
Soumil Gandhi, a senior analyst at HDFC Securities, explained that following Trump’s tariff decisions, there was a noticeable increase in risk-averse behavior that contributed to gold reaching its peak. However, after initial gains, the prices have retreated as profit-booking by traders affected the market. In the Asian markets, spot silver also fell, down 4.21% to $32.44 per ounce.
Chintan Mehta, CEO of Abans Financial Services, emphasized that investors are keeping a close watch on the implications of Trump’s new tariff policies and their potential impact on the global economy. He noted that attention is also directed toward weekly U.S. unemployment claims and the service PMI data set to be released on Thursday, which could provide further insights into the U.S. economy amidst rising trade tensions.
Table: Recent Price Movement of Gold and Silver
| Metal | Price in Delhi (per 10 grams/kg) | Change | Futures Price (per 10 grams/kg) | Change |
|---|---|---|---|---|
| Gold (99.9% Purity) | ₹94,350 | +₹200 | ₹90,558 | -₹170 |
| Gold (99.5% Purity) | ₹93,900 | +₹200 | ₹88,727 | -₹2,001 |
| Silver | ₹100,500 (kg) | -₹1,000 | ₹95,110 (kg) | -₹4,643 |
This current volatility in the gold and silver markets underscores the importance of staying informed and strategic in investment decisions, particularly in relation to external economic factors that can influence market trends.