Gold and silver prices declined on Thursday as weak global cues and cautious investor sentiment weighed on the bullion market. The drop brought temporary relief for consumers and jewellers after precious metal rates remained elevated over the past few weeks.
In the domestic market, 24-carat gold prices hovered around Rs 98,000 per 10 grams in major cities, while 22-carat gold traded near Rs 89,800. Silver prices also slipped below the Rs 1 lakh mark per kilogram in several markets.
Traders said the correction was mainly driven by softer international gold prices and reduced demand for safe-haven assets. Hopes of easing tensions in the Middle East and signs of stability in global markets prompted investors to book profits after gold recently touched record levels.
Market participants are also closely tracking signals from the US Federal Reserve regarding interest rate decisions. A stronger US dollar and rising bond yields generally make gold less attractive to investors, adding pressure on bullion prices globally.
On the Multi Commodity Exchange (MCX), both gold and silver futures traded lower during the session. Analysts believe investors are currently taking a cautious approach as they wait for fresh economic data and clarity on global inflation trends.
Despite the short-term decline, experts say gold continues to remain a preferred long-term investment option. Economic uncertainty, currency fluctuations, and geopolitical risks are still supporting overall demand for the yellow metal.
Jewellers expect the fall in prices to encourage fresh retail buying, especially during the ongoing wedding season. Many buyers who had postponed purchases due to record-high rates may now return to the market if prices remain stable.
Silver prices also moved lower alongside gold, affected by weak industrial demand and volatility in international commodity markets. However, analysts believe silver could remain active due to its strong industrial use in sectors like electronics and renewable energy.