Gold, Silver Prices Fall Further: Check Latest Rates in Delhi, Mumbai, Chennai, and Other Cities

Gold prices in India went on to decrease further on Thursday, reaching ₹1,22,320 per 10 grams after the end of the festive season. This price drop is part of one of the most significant declines in a single day in the last decade along with global gold prices which were corrected quickly from their highest record.

Global Gold Prices See Sharp Correction.

On Tuesday, international gold prices suffered a heavy fall of 6.3% thereby retreating from an all-time high of $4,381.52 an ounce. The decline was initiated by a mixture of factors, such as a stronger US dollar, a reduction in US-China trade tensions, and a halt in safe-haven demand after weeks of bullish momentum.

Also, the analysts mentioned overstretched technical indicators and unpredictability around US fiscal negotiations as the causes of the correction.

In India, the drop in prices has occurred right after the festive season when demand for gold was really high, thus leading to gold reaching its peak prices earlier this month. After the shopping during the festivals of Diwali and Dhanteras, traders are reporting a pause in the demand of physical gold.

ETF Holdings Remain Strong Despite Correction.

Bloomberg's data shows that the accumulation of gold exchange-traded funds (ETFs) globally has gone up to 98.9 million troy ounces, which is the highest since September 2022. This goes to show that even with the short-term volatility the investor's trust in gold as a long-term hedge is still there.

City-Wise Gold Prices (In 10 grams)

New Delhi: ₹1,21,890

Mumbai: ₹1,22,100

Bengaluru: ₹1,22,200

Kolkata: ₹1,21,940

Chennai: ₹1,22,450 (the maximum among the major cities)

The December 5 futures contract traded on the Multi Commodity Exchange (MCX) at ₹1,22,050 while spot gold prices were $4,077 an ounce — which is a decrease of over $300 from the previous week, as per the World Gold Council.

Silver Prices Also Decline.

Silver followed gold's trend and went down to ₹1,46,080 per kilogram as per the information provided by the India Bullion Association. On MCX, silver futures for December 5 traded lower at ₹1,45,751 per kg.

Market experts are of the view that both gold and silver are, in the near term, going to face the pressure, yet the existing geopolitical unpredictability and central bank purchases might be a medium-term factor for support.