Minor Dip in Precious Metal Prices on Monday
Gold prices in India recorded a slight decline in early trade on Monday, as per the latest data from GoodReturns. The price of 24-carat gold fell by ₹10, with ten grams now trading at ₹1,03,030. Similarly, 22-carat gold prices also dropped by ₹10, bringing the rate to ₹94,440 per 10 grams.
Silver prices followed the downward trend, slipping by ₹100, with one kilogram of silver priced at ₹1,16,900.
Gold Prices Across Major Indian Cities
The price of gold varies slightly across different cities in India. Here is a city-wise breakdown of gold prices for both 24-carat and 22-carat purity:
24-Carat Gold Price (per 10 grams)
- Mumbai: ₹1,03,030
- Kolkata: ₹1,03,030
- Chennai: ₹1,03,030
- Delhi: ₹1,03,180
22-Carat Gold Price (per 10 grams)
- Mumbai: ₹94,440
- Kolkata: ₹94,440
- Bengaluru: ₹94,440
- Chennai: ₹94,440
- Hyderabad: ₹94,440
- Delhi: ₹94,590
Silver Prices in Key Cities
- Mumbai: ₹1,16,900/kg
- Kolkata: ₹1,16,900/kg
- Delhi: ₹1,16,900/kg
- Chennai: ₹1,26,900/kg
Global Gold Market Update
In the international market, gold prices witnessed a decline as the US dollar strengthened and investors booked profits after a recent rally.
- Spot gold: Down 0.7% at $3,373.37 per ounce (as of 01:37 GMT)
- US gold futures (December delivery): Down 1.5% to $3,439.10 per ounce
Gold had recently touched its highest price since July 23 on Friday, but the latest movement shows a cooling-off phase.
Factors Influencing the Drop in Gold Prices
Several global and domestic factors contributed to the decline in gold prices today:
- Strengthening US Dollar – A stronger dollar makes gold more expensive for buyers using other currencies, impacting demand.
- Profit Booking – Investors took advantage of the recent rally to lock in gains, leading to a temporary price correction.
- Upcoming US Inflation Data – Markets are awaiting US Consumer Price Index (CPI) figures due Tuesday, which could influence Federal Reserve’s interest rate decisions.
- Tariff Impact on Inflation – Analysts expect tariffs to push the core inflation rate up by 0.3% annually to 3.0%, moving further away from the Fed’s 2% target.
Other Precious Metals Performance
Apart from gold and silver, other precious metals also recorded a dip:
- Spot Silver: Down 0.3% to $38.21 per ounce
- Platinum: Down 1.2% to $1,315.80 per ounce
- Palladium: Down 1% to $1,114.50 per ounce
Why Investors Should Track Gold Price Movements
Gold has historically been seen as a safe-haven investment during periods of economic uncertainty. Price fluctuations in gold and silver can indicate:
- Changes in global economic health
- Movements in the US dollar index
- Geopolitical tensions or stability
- Central bank policies and interest rates
- Inflation expectations and commodity demand
Investment Tips for Gold Buyers
With gold prices experiencing minor fluctuations, investors and buyers should keep the following in mind:
- Short-Term Buyers: Consider timing your purchase during price dips for better returns.
- Long-Term Investors: Focus on holding gold as a hedge against inflation and currency fluctuations.
- Silver Investment: Silver remains more volatile but can offer better percentage returns in bullish markets.
- Global Factors: Keep an eye on US Federal Reserve announcements, global inflation trends, and currency movements.
Outlook for the Week
Market analysts believe gold prices could remain range-bound until the US inflation data release. If the data shows higher-than-expected inflation, gold could see renewed buying interest as investors anticipate the Fed might slow down on interest rate hikes.
Conversely, if inflation cools, gold may face additional downward pressure as the dollar strengthens further.
Key Highlights
- 24-carat gold price today: ₹1,03,030 per 10 grams (down ₹10)
- 22-carat gold price today: ₹94,440 per 10 grams (down ₹10)
- Silver price today: ₹1,16,900 per kg (down ₹100)
- Global spot gold: $3,373.37/oz, down 0.7%
- Main reason for decline: Stronger US dollar and profit booking by investors
- Market focus: US inflation data release this week
Final Words
The slight fall in gold and silver prices reflects short-term market adjustments influenced by global economic cues. While domestic demand for gold in India remains steady due to cultural and festive buying patterns, international factors such as US economic data and currency strength will continue to play a crucial role in determining price trends.
