Gold and silver prices have seen a significant drop in the national capital, Delhi. According to data, gold prices have fallen below ₹1.25 lakh (approximately $1.25 lakh). Silver prices, on the other hand, have fallen below ₹1.50 lakh (approximately $1.50 lakh). Experts believe that the decline in gold and silver prices is largely due to the easing of trade tensions between the US and China, which has reduced demand for safe havens. Furthermore, experts believe that gold prices could see a further decline of 5 to 10 percent in the coming days. This means that gold prices in Delhi could fall below ₹1.10 lakh (approximately $1.10 lakh). Let us also tell you what the prices of gold and silver have become in the national capital, Delhi.
Gold and silver crash in Delhi
Gold prices fell by Rs 4,100 to Rs 1,21,800 per 10 grams in the national capital on Tuesday as demand for safe haven investments waned due to easing of US-China trade tensions, and it also fell below $4,000 per ounce in global markets. According to the All India Sarafa Association, the precious metal had closed at Rs 1,25,900 per 10 grams on Monday. Gold of 99.5 per cent purity also fell by Rs 4,100 to Rs 1,21,200 per 10 grams (including all taxes) in the local bullion market, while its previous closing price was Rs 1,25,300 per 10 grams.
According to experts, gold prices fell further on Tuesday, exacerbated by declining demand for safe-haven investments. Selling intensified, pushing the yellow metal to a three-week low. Silver prices also fell sharply by ₹6,250 on Tuesday, settling at ₹145,000 per kilogram (including all taxes). According to the association, the white metal had closed at ₹151,250 per kilogram on Monday.
Big fall in gold and silver prices in foreign markets
In international markets, spot gold remained under pressure, falling $94.36, or 2.37 percent, to $3,887.03 per ounce. In the previous session, it had closed below the $4,000 mark, down $132.02, or 3.21 percent. Spot silver also saw a sharp decline, falling 2.85 percent to a low of $45.56 per ounce. Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, said the decline was due to technical selling after the intra-day price failed to sustain above the psychological $4,000 level.
Gold and silver also fell on MCX
A significant drop in gold prices is being witnessed on the country’s futures market, the Multi Commodity Exchange. During the trading session, gold prices fell by Rs 3,329 to Rs 1,17,628 per ten grams. At 6:20 pm, gold was trading at Rs 1,18,249 per ten grams, down by Rs 2,708. Gold has fallen by Rs 14,666 per ten grams from its lifetime high. On October 17, gold had reached a lifetime high of Rs 1,32,294.
Meanwhile, the country’s futures market, the Multi Commodity Exchange, also witnessed a significant decline. Silver prices fell by ₹4,061 during the trading session, dropping below ₹1.40 lakh to ₹1,39,306. Significantly, silver prices reached a lifetime high of ₹1,70,415 on October 17th. Since then, silver prices have fallen by ₹31,109 per kilogram. At 6:25 pm, silver prices fell by ₹1,777 to trade at ₹1,41,590.
What are the experts saying?
Praveen Singh, Head of Commodities and Currency at Mirae Asset Sharekhan, said spot gold remained under pressure due to optimism about a US-China trade deal, dampening safe-haven demand. Meanwhile, US President Donald Trump and his Chinese counterpart Xi Jinping are set to finalize the outline of a trade agreement, with further meetings expected to follow. Trump’s expression of confidence in a trade deal with Japan also impacted bullion prices.
Praveen Singh said that outflows from gold ETFs remained low for the third consecutive day on October 24, further pressuring prices. He said investors are awaiting the US Federal Open Market Committee’s policy outcome on Wednesday, in which the central bank is expected to cut interest rates by 25 basis points. Saumil Gandhi of HDFC Securities said, “We believe gold will continue to decline, with a potential decline of 5-10 percent, as large investors may book profits after prices have risen more than 50 percent this year.”
