Gold, silver prices fall sharply this week; global trends, geopolitical easing behind dip

There’s good news for gold and silver buyers as prices of both precious metals saw a decline this week, bringing gold back below ₹96,000 per 10 grams and silver under ₹1.06 lakh per kilogram. 

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold is now ₹95,784 per 10 grams, down from ₹98,691 a week ago -- a sharp drop of ₹2,907.

Similarly, the price of 22-carat gold has come down to ₹87,738 from ₹90,404 per 10 grams. For 18-carat gold, the rate has dropped from ₹74,018 to ₹71,838 per 10 grams.

Silver prices also dipped during the review period, falling by ₹1,582 to ₹1,05,193 per kilogram from the previous ₹1,06,775.

Notably, silver had reached an all-time high of ₹1,09,550 per kg on June 18.

The international market has mirrored this trend, with gold on COMEX falling to $3,300 per ounce from $3,400 earlier. Silver has dropped to $36 per ounce.

Experts attribute the decline in precious metal prices to recent global developments, including the easing of tensions between Israel and Iran, signs of global stability, and weakness in the US dollar.

Despite this week’s drop, gold and silver have seen a strong rally since the beginning of the year.

Since January 1, the price of 24-carat gold has surged from ₹76,162 to ₹95,784 per 10 grams -- an increase of ₹19,622 or 25.76%.

Similarly, silver prices have jumped ₹19,176 or 22.29%, from ₹86,017 to ₹1,05,193 per kilogram.

Meanwhile, in an earlier report this month, experts said that gold prices are expected to rise sharply as fresh geopolitical tensions in the Middle East increase global uncertainty.

According to the report, experts believe gold could trade in the range of $3,500 to $3,700 in the coming weeks.

Akshay Chinchalkar of Axis Securities said that as long as spot gold remains above $3,314, it could move higher towards $3,770.