On Wednesday, gold in Delhi declined by ₹1,200 and settled at ₹1.48 lakh for 10 grams. Silver lost ₹4,000 and ended at ₹2.31 lakh for a kilogram. The steep fall in precious metals came due to strengthening of dollar and weak global trends. This is the second consecutive day in which silver has been losing its price.

According to the All India Bullion Association, gold (99.9% purity) has slumped by ₹1,200 from the previous closing price of ₹1,49,300 to ₹1.48 lakh per 10 grams. Silver has slumped by ₹4,000 and settled at ₹2.31 lakh for a kilogram. In the previous session, silver was closed at ₹2.35 lakh for a kilogram after a sharp fall of ₹10,500, the most in more than two weeks.

These losses are putting silver back to levels witnessed in early April when silver was trading at ₹2,37,000 per kilogram. Traders are focused on dollar denominated assets. Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities said that the steep rise in the dollar and expectations of monetary policy tightening weighed on precious metals. Spot gold in international market has slipped by $52.01 (1.3%) to $4,058.10 per ounce. Silver also fell by nearly two percent, trading at $60.48 per ounce.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, noted that the dollar index has strengthened once again, crossing the 101 mark-its highest level since May 2025. European Central Bank President Christine Lagarde downplayed the need for a strong response to inflationary pressures following the June rate hike, which further bolstered the dollar. This rising strength of the dollar is exerting direct pressure on gold and silver prices.

Analysts indicated that the decline in precious metals in overseas trading reflects a broader liquidity-driven adjustment across financial markets. Jatin Trivedi, Vice President of Research (Commodity and Currency) at LKP Securities, stated that this weakness stems from a liquidity event triggered by heavy profit-booking and sell-offs in global artificial intelligence and technology stocks. When investors face losses in equities, they sell their gold holdings to raise cash, helping them meet margin requirements and reduce leverage. This is one of those rare periods where both equities and gold are falling simultaneously; investors are selling what they can, rather than what they might prefer to sell.

Market participants expect the pressure on gold to persist. Analysts say that unless there are signs of the dollar softening or fresh investment demand for precious metals, further selling is likely to be triggered. Investors are maintaining a cautious stance amidst the dollar's strength and global economic uncertainty. While gold is traditionally considered a safe-haven asset, the current climate is seeing a shift in preference toward the dollar. Although this situation may be short-lived, the pressure is likely to continue in the near term.