Gold And Silver Prices Fall In India, Analysts Warn Of More Volatility Ahead
Introduction
Gold and silver prices in India have taken a clear downturn after weeks of strong performance. The correction comes as global investors adopt a cautious approach before the release of key US inflation data. Domestic jewellers are witnessing mild selling pressure, while buyers are waiting for more clarity before stepping back into the market.
In the last few days, 22-carat gold jewellery prices have dropped across major cities including Delhi, Mumbai, and Chennai. The silver market has also weakened, with prices sliding by more than 2 percent in the international market. Experts believe this is a healthy pullback rather than a full-blown reversal.
Why Gold Prices Are Falling
The fall in gold prices has been triggered by a combination of factors that are shaping global sentiment.
1. Profit Booking After Record Highs
Gold touched new peaks earlier this month as central banks continued to buy and geopolitical tensions boosted safe-haven demand. However, after such a strong rally, investors are now booking profits. Traders say the market is adjusting naturally as short-term investors take money off the table.
2. Dollar Strength And US Inflation Data
The US dollar has gained strength ahead of inflation data, which has put pressure on precious metals. A stronger dollar makes gold more expensive for buyers using other currencies. Analysts expect volatility to rise depending on how the inflation numbers turn out. If inflation remains high, gold could regain momentum, but if it cools down, prices might slip further.
3. Weak Global Demand
In recent weeks, physical demand from China and the Middle East has slowed. Many retail buyers are waiting for a clear trend before making large purchases. With the festival season now behind, the Indian domestic demand has also softened slightly.
4. Rising Bond Yields
Higher US Treasury yields are making non-interest-bearing assets like gold less attractive. This shift has added further pressure on global gold prices, dragging silver down as well.
Current Rates Across India
According to the latest data from leading jewellers and market trackers, gold and silver prices have fallen as follows:
- 22K Gold: Around ₹5,600 to ₹5,650 per gram depending on the city.
- 24K Gold: Around ₹6,120 per gram.
- Silver: Around ₹82,000 per kilogram in most Indian markets.
These rates are indicative and vary slightly based on local taxes, making charges, and demand conditions. Retail jewellers like Malabar Gold and Diamonds, Tanishq, Joyalukkas, and Kalyan Jewellers have all adjusted their price boards to reflect the current market trend.
Market Experts’ Opinions
Market experts believe this dip could continue in the short term but the long-term outlook remains positive.
According to financial analyst Mehul Shah, “The correction in gold and silver is a normal phase after a strong rally. The market is simply cooling off before the next move. Investors should watch global inflation data and dollar trends carefully before making new entries.”
Another expert from a leading bullion firm noted that if the price of gold breaks below ₹5,550 per gram for 22K jewellery, it could invite further selling pressure. On the other hand, if prices hold above ₹5,650, the market might stabilize and begin to move sideways.
What It Means For Jewellery Buyers
For jewellery buyers, the current phase might bring a small window of opportunity. Prices have eased slightly compared to early October, making it a better time for those planning weddings or festive purchases.
However, jewellers are advising customers to compare making charges and insist on BIS hallmark certification before buying. Some retailers have also launched festive offers to attract buyers amid the price correction.
What It Means For Investors
For investors, this is a time to stay patient. Precious metals are still considered one of the best hedges against long-term inflation and currency depreciation. Short-term volatility should not distract from the overall bullish structure that gold has maintained since 2020.
Analysts also highlight that Indian investors can use this opportunity to accumulate small quantities through SIP-style systematic gold investments or digital gold platforms.
If gold drops further below ₹5,500 per gram for 22K, it could offer a good entry point for long-term investors. Silver enthusiasts, too, can look for opportunities around ₹80,000 per kg, as industrial demand could revive in the coming months once inflation data settles.
Global Market Outlook
Internationally, gold futures are trading near 4,050 dollars per ounce, while silver is around 27 dollars per ounce. Both metals are under pressure as traders await signals from the US Federal Reserve about the next interest rate move.
If the Fed adopts a dovish stance and hints at rate cuts in early 2026, gold and silver could recover quickly. But if the central bank maintains a hawkish tone, the metals may remain under pressure for a few more weeks.
Future Possibilities
- If Inflation Rises Again: Safe-haven demand could return strongly, lifting both gold and silver prices.
- If Inflation Eases Further: Investors might move funds toward equities and riskier assets, keeping bullion subdued.
- If Dollar Weakens: A weaker dollar could attract new buying in emerging markets like India, supporting prices again.
Final Thoughts
The recent correction in gold and silver prices should not alarm investors. Markets are simply reacting to global data and adjusting positions. For long-term investors, every dip still presents an opportunity to accumulate steadily. For jewellery buyers, the drop means a little more value for their money before the wedding and festive season rush returns in November and December.
In short, the glitter may have dulled slightly, but the glow of gold remains far from gone.