The prices of gold and silver have continued to decline in the domestic bullion market. In the Delhi bullion market, gold has recorded a sharp fall over the past several trading sessions. From its high on August 25, gold has become cheaper by around Rs 8,900 per 10 grams. Silver has also declined by up to Rs 13,000 per kilogram from its recent high.
The decline in precious metals has been attributed to selling in international markets, fluctuations in crude oil prices and economic risks associated with tensions between the United States and Iran. Investors are also tracking the direction of inflation and global interest rates.
On August 25, 2026, the price of 99.9% purity gold in the Delhi bullion market increased by Rs 2,700 to Rs 1,67,100 per 10 grams. This marked the fourth consecutive trading day of gains in gold prices. However, the market trend changed thereafter, with gold beginning a sustained decline. Prices fell by thousands of rupees over the subsequent trading sessions.
Gold prices weakened on almost every trading session after August 25. On August 26, the price declined by Rs 600 to Rs 1,66,500 per 10 grams. On August 27, it fell by Rs 800 to Rs 1,65,700. On August 28, gold declined by Rs 3,300 to Rs 1,62,400. On August 31, it fell by Rs 1,500 to Rs 1,60,900, while on September 1, the price declined by Rs 2,700 to Rs 1,58,200 per 10 grams.
As a result, gold declined by Rs 8,900 per 10 grams between August 25 and September 1. In percentage terms, this represents a decline of around 5.30%.
Precious metal prices in international markets are influenced by several economic and geopolitical factors. Amid developments related to tensions between the United States and Iran, the rise in crude oil prices has increased concerns over inflation. Higher inflation expectations can lead investors to revise their expectations regarding central banks' interest rate policies. Potential changes in the direction of interest rates can also affect non-interest-bearing assets such as gold.
In addition, heavy selling in global markets has affected investors' risk-taking capacity. In such an environment, gold prices can experience sharp fluctuations.
Silver prices have also continued to decline alongside gold. On August 24, silver prices in the Delhi bullion market rose for the third consecutive day to reach Rs 2,53,500 per kilogram. At the time, this was around a four-month high. Silver subsequently recorded continued weakness. On September 1, its price declined by Rs 5,000 to Rs 2,40,500 per kilogram.
As a result, silver has declined by a total of Rs 13,000 per kilogram from its August 24 level.
