Gold and silver prices, which once reached record highs, have unexpectedly seen a steep decline. On Monday, the price of 24-carat gold dropped by ₹9,050, bringing it down to ₹1,51,153 for 10 grams. Similarly, 22-carat gold saw a reduction of ₹8,300, settling at ₹1,38,900. Notably, gold prices, which hit an all-time high of ₹1,78,850 on January 29, decreased by ₹27,320 within just four days.
The price of silver has also seen a significant drop. On Monday, the cost of a kilogram of silver fell by ₹20,000, standing at ₹3,00,000. This is a sharp decrease from its January 29 peak of ₹4,25,000, a reduction of ₹1,25,000 in four days, surprising market analysts. This decline is attributed to factors such as profit-taking, weak global signals, and increased CME margins impacting both gold and silver prices.
Over the past year, gold and silver prices have soared to record levels, causing concern among buyers. International political tensions, the weakening of major currencies like the dollar, and uncertainty around Federal Reserve policies led investors to heavily invest in gold and silver. China’s silver marketing strategies and increased demand for silver in electronics also contributed to the price rise.
However, since Friday, investors have been inclined to take profits. Comments from U.S. President Donald Trump about potentially appointing Kevin Warsh as the next Federal Reserve Chair, along with hopes of controlling inflation and a strengthening U.S. dollar, have led to a decline in bullion market prices.
Market analysts, like Jateen Trivedi from LKP Securities, suggest that these fluctuations might be short-lived. Silver prices could experience more volatility, but in the long term, they may rise again. Akshat Garg, head of Choice Wealth Research, reassures that there’s no need to worry about the instability, as gold and silver are long-term investment protections, not for immediate trading.
Therefore, buyers are advised to proceed cautiously until prices stabilize. Experts believe that international geopolitical uncertainties, central bank policies, and inflation fears will continue to support gold and silver prices in the long run.
