In a significant market shift, gold and silver prices recorded a noticeable decline on Thursday, driven primarily by weak demand, profit-booking, and soft international market trends. Traders and investors across India are closely monitoring this downward price action, as bullion rates in the domestic market continue to fluctuate. Here’s a comprehensive update on the latest gold and silver prices, market insights, and expert perspectives on what might come next.
Gold Price Drops Sharply: ₹1,400 Plunge Per 10 Grams
The price of gold on Thursday witnessed a sharp fall of ₹1,400, bringing the rate down to ₹99,620 per 10 grams. This is a significant dip from earlier highs and has been attributed to both profit-taking by stockists and a cooling off in international trends.
In more detail, gold of 99.5% purity declined by ₹1,200, settling at ₹99,250 per 10 grams in the Delhi bullion market. These adjustments come after weeks of volatile movements, where gold touched record levels due to inflationary concerns and geopolitical instability.
Silver Price Crashes by ₹3,000: Trades at ₹1,15,000 per Kg
Silver prices too faced a steep drop, slipping ₹3,000 per kilogram. As of Thursday’s trading session, silver is priced at ₹1,15,000 per kg (inclusive of all taxes). This marks a significant retracement in the white metal, which had been gaining momentum over the past month.
The All India Bullion Association (AIBA) confirmed the price correction, citing reduced industrial demand, strengthening of the dollar, and global bearish cues as leading contributors.
Bullion Market Overview: What’s Driving the Decline?
The current slump in bullion prices is a result of a confluence of factors:
Global Market Weakness: International gold and silver prices have remained under pressure due to a stronger US dollar and rising bond yields, which have reduced the appeal of non-yielding assets like precious metals.
Profit Booking: With prices previously hitting record highs, many domestic traders engaged in profit booking, accelerating the downward momentum.
Soft Demand: Both retail and industrial demand have shown signs of moderation. With wedding season nearing its end and fewer auspicious dates in the Hindu calendar, buying activity has cooled off significantly.
Geopolitical Stability: A temporary easing in global geopolitical tensions has also contributed to the loss of safe-haven demand for gold and silver.
Current Gold and Silver Prices Across Major Cities in India
Here’s a look at the latest gold and silver prices as recorded in top Indian metros:
| City | Gold Price (24K / 10gm) | Silver Price (1kg) |
|---|---|---|
| Delhi | ₹99,620 | ₹1,15,000 |
| Mumbai | ₹99,450 | ₹1,14,850 |
| Chennai | ₹100,110 | ₹1,15,300 |
| Kolkata | ₹99,680 | ₹1,14,900 |
| Bengaluru | ₹99,520 | ₹1,15,100 |
Prices inclusive of taxes, sourced from authorized bullion dealers.
International Trends: COMEX and Spot Market Update
On the COMEX (Commodity Exchange Inc.), gold futures for August delivery fell by 0.6% to $2,385 per ounce, while silver futures slipped by 1.3% to $30.25 per ounce. The spot market echoed similar trends with consistent bearish sentiment prevailing across both the New York Mercantile Exchange (NYMEX) and London Bullion Market.
The US Federal Reserve’s policy signals, coupled with macroeconomic data such as jobless claims and inflation metrics, have created a cautious atmosphere for investors, reducing demand for hedging instruments like gold and silver.
Expert Insights: What Should Investors Expect Next?
According to leading bullion analysts:
Short-Term Volatility: Price correction was anticipated given the sharp rally over the past month. Further short-term fluctuations are likely.
Long-Term Bullish Outlook: Despite the current decline, the long-term outlook remains moderately bullish, especially if inflation persists and global uncertainty resumes.
Buying Opportunity: The current dip may present a buying opportunity for long-term investors, particularly ahead of upcoming festivals such as Raksha Bandhan and Ganesh Chaturthi, when demand traditionally rises.
Gold-Silver Ratio Trends: Key Metrics to Watch
The gold-silver ratio, which represents the number of ounces of silver required to purchase one ounce of gold, is currently hovering around 78.8. This ratio has been fluctuating as silver underperforms relative to gold. A falling ratio is often seen as a bullish indicator for silver, suggesting potential catch-up movement in the near term.
Outlook for Retail Buyers and Jewelers
Retail buyers may find this a favorable time to enter the market, particularly with prices cooling off from recent highs. Jewelers, on the other hand, are expected to increase stocking ahead of the festival season, which could firm up prices again in the coming weeks.
GST-registered traders and jewelers across India are reporting a gradual uptick in physical demand post the decline, signaling that bottom-fishing may be underway.
Investment Strategy in Precious Metals: Caution and Timing Key
For investors, timing is crucial. While Systematic Investment Plans (SIPs) in gold ETFs or sovereign gold bonds (SGBs) remain sound long-term options, those seeking short-term gains should monitor global trends and Fed commentary closely.
It is advised to maintain portfolio diversification, with precious metals forming no more than 10–15% of total assets for conservative investors.
Conclusion: Market Correction Opens Window of Opportunity
The recent dip in gold and silver prices is a natural market correction following an extended rally. While global cues remain cautious, the Indian bullion market is expected to stabilize in the coming sessions.
We recommend investors and retail buyers to stay informed, watch for cues from global economic indicators, and consult certified financial advisors before making substantial purchases.
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