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Gold Price Declines in India Even as Global Rates Surge

 

Gold prices in India slid even as the global prices were buoyed by growing uncertainty in the economies and rising tensions in trade. The price of gold of 24 carats fell to Rs 87,500 per 10 grams, while 22-carat gold fell to Rs 80,360 per 10 grams. Silver also went down and was trading below Rs 1,01,000 per kg due to volatility in global markets.

The local price slump occurred despite a rally in global gold prices, driven by US President Donald Trump's imposition of a 50% tariff on imports of steel and aluminium from Canada. The action increased worries of global trade disturbances and economic downturn and induced investors to seek refuge in gold.

On the Multi Commodity Exchange (MCX), gold opened at Rs 86,139 per 10 grams and hit a high of Rs 86,271, up marginally from Tuesday's Rs 86,152 close. Globally, spot gold also held above US$2,900 per ounce as COMEX gold was trading at US$2,924 per troy ounce, reflecting continued world demand.

 

Gold and Silver Prices in India

 

Even with price hikes overseas, Indian gold and silver prices fell on Wednesday:

24-carat gold: Rs 8,765.3 per gram (- Rs 350)

22-carat gold: Rs 8,036.3 per gram (- Rs 320)

Silver per kg: Rs 101,000 (- Rs 1,000)

 

City Gold (24K) per 10g Gold (22K) per 10g Silver per kg
Delhi Rs 87,653 Rs 80,400 Rs 1,08,750
Hyderabad Rs 87,509 Rs 80,310 Rs 1,10,200
Visakhapatnam Rs 87,517 Rs 80,315 Rs 1,09,400
Chennai Rs 87,501 Rs 80,300 Rs 1,09,600
Chandigarh Rs 87,662 Rs 80,405 Rs 1,08,700
Bangalore Rs 87,495 Rs 80,280 Rs 1,08,900
Kolkata Rs 87,540 Rs 80,350 Rs 1,09,150

 

What's Driving Gold Prices

 

Market analysts attribute various reasons to the gold price fluctuations of late. Jateen Trivedi, LKP Securities VP Research Analyst, explained the trends as a result of a weaker US dollar, increased tariff fears, and anticipation of Federal Reserve interest rate cuts. The dollar index, though up 0.25 percent at 103.50, is generally weak, further supporting the price stability of gold further. Meanwhile, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, emphasised that gold’s trajectory remains closely linked to US dollar movements and global trade policies. Economic uncertainties, including stagflation risks, have raised expectations of multiple Federal Reserve rate cuts in 2025, further influencing gold prices.

 

Trump’s Tariff Impact on Global Markets

 

Trump's aggressive tariff policy, which is a retaliatory measure to Ontario's electricity tax, has increased trade tensions, causing a 1.2% worldwide increase in the price of gold. The action has also battered US equities, with investors moving into gold and other safe-haven instruments.

Stephen Jury, JPMorgan Private Bank's Global Commodity Strategist, said that if recessionary fears intensify, gold prices will experience another big rally during the second half of 2025.

The predictions of experts clearly indicate that gold and silver prices would continue to be in turmoil owing to global economic trends, US trade policies, and the latest moves by the Federal Reserves. This volatility is paired with a recommendation to investors to pay keen attention to currency movements, inflation data, and geopolitical developments that may induce further price changes in the weeks to come.