Gold prices declined for a second consecutive trading session in the Indian bullion market, while silver prices registered a sharp increase despite a recovery in international gold prices on COMEX.
In the latest trading session, the average domestic price of gold fell to around ₹1,45,900 per 10 grams, down ₹1,368 per 10 grams from the previous trading session. This follows a decline of nearly ₹1,900 in the preceding session, taking the cumulative fall over two days to more than ₹3,000 per 10 grams.
In the national capital, Delhi, the price of 24-carat gold stood at around ₹1,45,650 per 10 grams, slightly below the national average. The price of 18-carat gold, widely used for jewellery purchases, also declined to around ₹1,09,425 per 10 grams.
Meanwhile, gold on the COMEX was trading about 0.63% higher, indicating a recovery in international prices from lower levels. However, domestic gold prices continued to decline despite the global rebound.
The decline in domestic prices has been attributed to multiple domestic factors. Seasonal demand has eased following the end of the peak wedding and festival season, resulting in lower jewellery purchases. In addition, the recent fall in prices has prompted several consumers and investors to postpone purchases in anticipation of further declines.
Market experts said many consumers are selling old gold to raise cash, increasing market supply while demand remains comparatively subdued. This imbalance between supply and demand has weighed on domestic prices. Uncertainty related to import duties and government policies has also affected buyer sentiment. At the same time, the strength of the US dollar and changing investment strategies among global investors have influenced the domestic market.
Silver prices, however, moved sharply higher. COMEX silver gained about 1.12%, with the increase reflected in the Indian bullion market. Domestic silver prices rose by approximately ₹3,091 per kilogram to ₹2.32 lakh per kilogram, representing a daily gain of about 1.35%.
According to market experts, firm industrial demand, increasing usage in green energy projects, and rising interest from global investors are supporting silver prices.
