India witnessed significant fluctuations in gold and silver prices on Wednesday. After a period of continuous growth last week, the shine on these precious metals dimmed somewhat.
Gold and Silver Rate: Wednesday finally saw a decline in gold and silver prices, ending a seven-day upward trend. According to the All India Sarafa Association, in Delhi, the price of gold fell by ₹110 to ₹97,670 per 10 grams, while 99.5% pure gold decreased by ₹100 to ₹97,250 per 10 grams (inclusive of all taxes).
Similarly, silver prices also experienced a substantial drop of ₹1,000, reaching ₹107,100 per kilogram. On Tuesday, silver had hit a record high of ₹108,100 per kilogram. Weakness was also observed in global markets, where spot silver fell by 0.3% to $36.64 per ounce.
Today's Prices in the National Capital:
- 24 Carat Gold – Decreased by ₹110, settling at ₹97,670 per 10 grams.
- 99.5% Pure Gold – Decreased by ₹100, reaching ₹97,250 per 10 grams.
- Silver – Experienced a significant drop of ₹1,000, closing at ₹107,100 per kilogram.
It is noteworthy that on Monday, silver prices had increased by ₹1,000 to ₹108,100 per kilogram, a new all-time high.
Shift in Global Market Trends
Internationally, spot gold saw a slight increase on Tuesday, closing at $3,329.12 per ounce, while spot silver fell by 0.3% to $36.64 per ounce. These international fluctuations impacted the Indian bullion market, leading investors to begin profit-booking. According to Shriram Iyer, Senior Analyst at Reliance Securities, investor confidence has shifted towards the stock market due to the potential for improved trade relations between the US and China.
Indeed, on Tuesday in London, the world's two largest economies, the US and China, engaged in a second round of trade talks. This positive development increased risk appetite in the global market, reducing demand for safe haven investments like gold.
Future Price Fluctuations?
Deveya Gaglani, Senior Analyst at Axis Securities, states that this week will see the release of major economic indicators such as US inflation data (CPI data) and the Consumer Sentiment Index. If these figures deviate from expectations, it will impact the Federal Reserve's future interest rate policy, directly influencing gold and silver prices. Experts believe that significant price volatility is likely in the near future.
According to a report, domestic gold jewelry consumption may decline by 9-10% in 2025-26. The main reason is the approximately 33% surge in gold prices in recent years. Rising prices are impacting consumer purchasing power, putting pressure on the jewelry sector.
