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Gold Slips to ₹1.48 Lakh, Silver Extends Losses Amid Rising Dollar and Weak Global Trend
A sharp decline in gold and silver prices was recorded in Delhi. A strengthening dollar, weak global trends, and expectations of tighter monetary policy exerted pressure on precious metals. Read on to understand the key market factors and analysts' views.
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.
