Gold and Silver Prices Decline in Indian Bullion Market
New Delhi, January 29 : The domestic bullion market continues to experience a downward trend, with both gold and silver prices witnessing a decline. On Monday, gold prices dropped by ₹300 to ₹320 per 10 grams, affecting trade across major Indian cities. As a result, 24-carat gold is currently trading between ₹81,920 and ₹82,070 per 10 grams, while 22-carat gold is priced between ₹75,090 and ₹75,240 per 10 grams.
Silver prices have also slipped, with the Delhi bullion market recording silver at ₹96,300 per kilogram.
Gold Prices Across Major Indian Cities
The price fluctuation has impacted major cities, with bullion traders reporting the following rates:
| City | 24-Carat Gold (₹ per 10g) | 22-Carat Gold (₹ per 10g) |
|---|---|---|
| Delhi | 82,070 | 75,240 |
| Mumbai | 81,920 | 75,090 |
| Ahmedabad | 81,970 | 75,140 |
| Chennai | 81,920 | 75,090 |
| Kolkata | 81,920 | 75,090 |
| Lucknow | 82,070 | 75,240 |
| Patna | 81,970 | 75,140 |
| Jaipur | 82,070 | 75,240 |
Key southern markets, including Bengaluru, Hyderabad, and Bhubaneswar, have also reported a drop in gold prices. The 24-carat gold rate in these cities is ₹81,920 per 10 grams, while 22-carat gold is trading at ₹75,090 per 10 grams.
Silver Prices Decline Slightly
The silver market has also shown a slight decline, following the weakening trend in gold. Silver is currently trading at ₹96,300 per kilogram in the Delhi bullion market, reflecting marginal fluctuations across India.
Factors Behind the Decline in Gold and Silver Prices
1. Global Market Trends
The international gold market has seen weakening prices, impacting Indian bullion rates. The fluctuation in the US dollar index and global economic conditions have contributed to gold’s declining trend.
2. Federal Reserve Policy and Interest Rates
The US Federal Reserve’s stance on interest rate hikes has played a crucial role in gold’s price movement. A potential delay in rate cuts has strengthened the US dollar, making gold less attractive to investors.
3. Domestic Demand and Seasonal Trends
Gold demand in India typically fluctuates based on wedding seasons, festivals, and investor sentiment. With no major festivals in sight, demand has remained moderate, contributing to a price drop.
4. Stock Market Performance
A strong domestic equity market has diverted investor focus away from gold investments, leading to lower demand in the bullion market.
5. Fluctuating Silver Prices
Silver prices are often influenced by industrial demand and international trends. A slight weakness in global silver markets has contributed to a fall in domestic silver prices as well.
Market Outlook: Will Gold Prices Rebound?
Despite the current price drop, experts believe that gold prices may recover in the coming weeks due to the following factors:
Geopolitical Uncertainty: Global economic instability and tensions may drive investors toward safe-haven assets like gold.
Festive and Wedding Season: Demand is expected to pick up as India moves into the wedding season, leading to a price increase.
Central Bank Policies: Any hint of interest rate cuts by global central banks could lead to a bullish trend in gold prices.
For now, traders and investors closely monitor international and domestic cues to determine the next price movement.
Should Investors Buy Gold Now?
Analysts suggest that this dip in prices presents a good buying opportunity for long-term investors. Investors planning to purchase gold jewelry, bars, or sovereign bonds may benefit from the current lower prices before rates start to rise again.
Conclusion: Gold Loses Shine, but a Comeback is Likely
The decline in gold and silver prices has led to a mixed sentiment among investors and traders. While short-term fluctuations continue, experts believe that gold will remain a strong asset in 2025, with potential rebounds expected in the coming months.
For now, the bullion market remains cautious, watching global cues and investor sentiment for further price direction.
