Gold and silver prices slipped on Thursday, offering some respite to jewellery buyers after the precious metals rallied in recent sessions.
According to the latest rates released by the India Bullion and Jewellers Association (IBJA), 24-carat gold (999 purity) fell by ₹590 to ₹145,880 per 10 grams from the previous day’s closing price of ₹146,470. Silver also registered a notable decline, dropping ₹2,020 to ₹226,970 per kilogram, compared with ₹228,990 in the previous session.
The fall follows a strong rally in bullion prices over the past few days, when gold climbed to a two-week high on the back of safe-haven demand. Global investors had turned to precious metals amid heightened geopolitical tensions, uncertainty over international trade policies and concerns about inflation.
For Indian consumers, the latest correction comes as welcome news, especially for those planning jewellery purchases ahead of the festive and wedding season. Jewellers say enquiries have increased as customers who delayed purchases during the recent price surge are once again evaluating the market.
“Whenever gold prices correct after a sharp rise, many retail buyers step in. People buying for weddings or family functions often use such dips as an opportunity,” said a bullion dealer in Mumbai.
Retail gold prices vary across cities because they include GST, making charges and local taxes. As a result, jewellery prices in Delhi, Mumbai, Chennai, Kolkata and other cities differ slightly from the benchmark bullion rates announced by the IBJA. Buyers are advised to compare prices, verify hallmark certification and understand making charges before making a purchase.
International factors continued to dominate market sentiment. Spot gold eased after touching a two-week high as traders booked profits ahead of major economic events. Investors are now focused on the US Federal Reserve’s policy decision and commentary on inflation and interest rates. Although the central bank is widely expected to keep benchmark interest rates unchanged, markets are keenly awaiting signals on the future direction of monetary policy.
Interest rates have a significant influence on gold prices. Higher interest rates increase the returns on fixed-income investments, making non-yielding assets such as gold relatively less attractive. Conversely, expectations of lower rates generally support bullion prices by reducing the opportunity cost of holding gold.
Apart from the Federal Reserve meeting, investors are also tracking movements in the US dollar and crude oil prices. A weaker dollar typically supports gold by making it cheaper for buyers using other currencies. However, rising crude oil prices have renewed inflation concerns, creating uncertainty over how quickly central banks may ease monetary policy.
Silver also remained under pressure during the session. Unlike gold, silver is influenced not only by investment demand but also by industrial consumption. The metal is widely used in electronics, solar panels, electric vehicles and several manufacturing sectors. As a result, changes in global industrial activity often have a greater impact on silver prices than on gold.
Despite Wednesday’s decline, market experts believe the long-term outlook for bullion remains constructive. Continued geopolitical tensions, central bank purchases of gold and uncertainty surrounding global economic growth are expected to provide support to precious metal prices over the coming months.
Financial planners advise investors not to react to short-term price movements. Instead, they recommend accumulating gold gradually through systematic investment plans in gold exchange-traded funds (ETFs), digital gold or physical purchases aligned with long-term financial goals. Those buying jewellery are also encouraged to focus on purity and certified hallmarked products rather than trying to perfectly time the market.
Analysts expect bullion prices to remain volatile in the coming weeks as investors respond to fresh inflation data, central bank statements and developments in global trade and geopolitics. Any unexpected policy announcements or escalation in international conflicts could quickly alter the direction of gold and silver prices.
For now, Wednesday’s correction has provided a brief breather for buyers after the recent surge in bullion prices. Whether the decline continues or proves temporary will largely depend on upcoming global economic cues and investor sentiment in the days ahead.
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