Gold and silver prices witnessed a sharp decline in the Indian bullion market.
The fall came after stronger-than-expected US jobs data boosted the dollar and triggered profit-booking in global precious metal markets.
As a result, both gold and silver prices slipped significantly on the Multi Commodity Exchange (MCX) and in the domestic bullion market.
Gold Drops Up to ₹1,850 per 10 Grams
On Friday, gold prices fell by around ₹1,600 to ₹1,850 per 10 grams across major markets.
Silver also recorded a steep decline of ₹4,000 to ₹5,800 per kilogram.
Since both the India Bullion and Jewellers Association (IBJA) market and MCX remain closed on Saturdays and Sundays, prices are currently holding at Friday’s levels.
Latest Gold Prices in Major Cities
| City | 24 Carat Gold (per 10 grams) | 22 Carat Gold (per 10 grams) |
|---|---|---|
| Delhi | ₹1,55,870 | ₹1,42,890 |
| Mumbai | ₹1,55,720 | ₹1,42,740 |
| Kolkata | ₹1,55,720 | ₹1,42,740 |
| Chennai | ₹1,57,950 | ₹1,44,290 |
Silver Prices Also Under Pressure
Silver prices also moved lower across the country.
The average retail price of silver currently ranges between ₹2,74,900 and ₹2,79,900 per kilogram.
In Delhi, silver is priced at around ₹2,749 per 10 grams and ₹2,79,900 per kilogram.
In Mumbai and Kolkata, prices are around ₹2,750 per 10 grams and ₹2,75,000 per kilogram.
Chennai continues to have slightly higher silver rates, with prices touching around ₹2,800 per 10 grams and ₹2,80,000 per kilogram.
Why Did Gold and Silver Prices Fall?
Several factors contributed to the decline in precious metal prices.
Strong US Jobs Data
The US economy added around 172,000 jobs in May, beating market expectations.
This indicates that the economy remains strong.
A strong economy reduces the chances of an early interest rate cut by the US Federal Reserve.
Higher interest rates generally make gold less attractive to investors, leading to selling pressure.
Fall in International Prices
Gold and silver prices have also weakened in the global market.
Gold slipped below $4,450 per ounce, while silver fell below $73 per ounce in the international spot market.
This global weakness directly impacted prices in India.
Reduced Demand for Safe-Haven Assets
Recent reports suggesting a possible ceasefire between Israel and Lebanon have eased some geopolitical concerns.
When global tensions decrease, investors often move away from safe-haven assets such as gold and silver. This has further contributed to the decline in prices.
What Should Investors Watch Next?
The next movement in gold and silver prices will largely depend on upcoming US economic data, interest rate expectations, and global geopolitical developments.
If the US Federal Reserve continues to signal higher interest rates for longer, precious metals could remain under pressure in the near term.
