Global economic uncertainty and rising geopolitical tensions in the Middle East continued to impact commodity markets, leading to persistent fluctuations in gold and silver prices in India.
Demand for gold, which is considered a safe-haven asset, remained steady, although prices of both precious metals declined in the domestic futures market on Thursday.
Indian investors and jewellery buyers are closely tracking international markets, movements in the US dollar and changes in import duties, all of which are directly influencing domestic prices.
On the Multi Commodity Exchange of India (MCX), both gold and silver traded lower on Thursday. Gold contracts for June 5 delivery declined around 0.42%, with prices falling by nearly ₹687 per 10 grams during intraday trade to approximately ₹1,59,319.
Silver contracts for July 3 delivery fell around 1.4%, with prices declining by nearly ₹3,864 per kilogram to approximately ₹2,70,401 per kilogram.
According to experts, profit-booking in precious metals was observed due to the strengthening of the US dollar and cautious investor positioning in global markets.
Despite the recent decline, gold prices continue to remain at historically elevated levels. Gold has continued to receive support from international tensions, central bank purchases and increasing demand for safe-haven investments.
Analysts said gold prices could move towards new highs again if global tensions escalate further or if the US dollar weakens.
In Delhi, the price of 24-carat gold stood at ₹16,024 per gram, while 22-carat gold was priced at ₹14,676 per gram and 18-carat gold at ₹12,011 per gram.
In Mumbai, 24-carat gold was priced at ₹15,994 per gram, 22-carat gold at ₹14,661 per gram and 18-carat gold at ₹11,996 per gram.
In Chennai, 24-carat gold stood at ₹16,168 per gram, while 22-carat gold was priced at ₹14,811 per gram and 18-carat gold at ₹12,426 per gram.
In Kolkata, 24-carat gold was priced at ₹15,994 per gram, 22-carat gold at ₹14,661 per gram and 18-carat gold at ₹11,996 per gram.
Gold prices in Bengaluru, Hyderabad, Pune, Ahmedabad and Vadodara also remained at nearly similar levels.
The average silver price in India stood at ₹285.10 per gram, ₹28,510 per 100 grams and ₹2,85,100 per kilogram.
Among major cities, silver prices were recorded at ₹2,85,100 per kilogram in Delhi, Mumbai and Kolkata, while Chennai and Hyderabad reported silver prices of ₹2,90,100 per kilogram.
According to experts, industrial demand and global economic activity continue to have a significant impact on silver prices.
The Government of India recently increased import duty on gold and silver to 15%. Earlier, the import duty was around 6%.
