Gold prices today and silver prices today edged lower on Friday as investors turned cautious ahead of next week’s US Federal Reserve policy meeting, while rising crude oil prices and a stronger US dollar weighed on sentiment in the precious metals market. The decline was visible in both domestic retail markets and the futures segment, even as jewellers reported a gradual pickup in enquiries from buyers hoping to take advantage of softer prices.
On the Multi Commodity Exchange (MCX), gold futures slipped to around ₹1,42,920 per 10 grams, while MCX silver futures traded lower at about ₹2,18,630 per kilogram during the session. The weakness reflected cautious trading as investors preferred to wait for fresh global cues before taking new positions.
In the retail market, 24-carat gold prices were quoted at around ₹14,433 per gram, while 22-carat gold was priced near ₹13,230 per gram across major cities, including Delhi, Mumbai, Kolkata, Chennai, Bengaluru and Hyderabad. Silver prices remained largely stable in physical markets, although rates differed slightly from city to city depending on local taxes, transportation costs and jewellers’ margins.
The recent correction in gold rates has come as a relief for jewellery buyers after bullion prices had touched record highs earlier this month. Many customers planning purchases for weddings and upcoming festive occasions are beginning to return to jewellery stores, although most continue to buy cautiously in the hope that prices may soften further.
According to market experts, the biggest factor influencing gold prices today is the sharp rise in Brent crude oil prices, which climbed above $100 per barrel following renewed geopolitical tensions in the Middle East. Higher crude prices increase global inflation risks, raising expectations that major central banks, including the US Federal Reserve, may keep interest rates elevated for longer.
Gold is traditionally regarded as a safe-haven investment during times of economic and geopolitical uncertainty. However, when interest rates remain high, the opportunity cost of holding non-yielding assets such as gold increases, making the precious metal less attractive compared with interest-bearing investments like bonds. This has limited fresh buying despite ongoing global uncertainty.
The US Federal Reserve’s policy meeting next week is another major event being closely watched by investors. Market participants are looking for indications on the future direction of US interest rates. Any signal that the Fed may delay rate cuts or continue its restrictive monetary policy could keep pressure on gold prices, while a softer stance may provide support to bullion in the coming weeks.
The stronger US dollar has also contributed to the recent weakness in bullion prices. Since gold is traded globally in dollars, a stronger greenback makes the metal more expensive for overseas buyers, reducing demand and putting downward pressure on international prices. Domestic gold rates in India often mirror these global movements, though fluctuations in the rupee and import duties also influence local prices.
Silver, which is both a precious and industrial metal, has also witnessed increased volatility. While silver prices today remained lower on the MCX, analysts believe the metal continues to receive long-term support from growing industrial demand, particularly from the solar energy, electric vehicle and electronics sectors. However, concerns over slowing global economic growth have temporarily capped further gains.
Despite the recent correction, market analysts remain optimistic about the long-term outlook for bullion. Ongoing geopolitical tensions, central bank purchases and persistent inflation concerns continue to support demand for gold as a portfolio hedge. Many financial advisors recommend maintaining a small allocation to gold as part of a diversified investment strategy, particularly during periods of heightened market volatility.
Jewellers say the decline in prices has encouraged more customer enquiries, but actual purchases remain selective. Buyers are comparing prices across brands and checking daily rate movements before making large investments. Industry experts also advise consumers to verify hallmark certification and compare making charges before purchasing gold jewellery, as these costs vary significantly between retailers.
Looking ahead, gold prices, silver prices, MCX gold, MCX silver futures, the movement of the US dollar, crude oil prices and the outcome of the US Federal Reserve meeting will remain the key factors driving the bullion market. While short-term volatility is expected to continue, analysts believe long-term investors and jewellery buyers could benefit if prices remain stable or witness further corrections in the coming days.
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