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Gold prices in India dropped sharply despite strong festive demand (Image: Internet)
New Delhi: Gold prices in India declined sharply on Monday, even as demand typically strengthens during the auspicious festival of Akshaya Tritiya. The drop reflects growing global uncertainty and shifting investor sentiment rather than local buying trends. The price of 24 carat gold fell by ₹4,900 per 100 grams, bringing it down to ₹15,52,900.
On a smaller scale, 10 grams dropped by ₹490 to ₹1,55,290, while the 1 gram declined to ₹15,529. Similar declines were recorded across 22-carat and 18-carat gold categories, indicating a broad based correction in the bullion market.
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The primary driver behind the decline is escalating tension in the Strait of Hormuz. A recent naval confrontation involving the United States and Iran has raised concerns over global oil supply disruptions.
This has triggered fears of rising inflation and potential interest rate hikes by central banks. Higher interest rates tend to reduce the appeal of non-yielding assets like gold, leading investors to shift toward the US dollar and crude oil, both of which are currently seen as more attractive safe-haven options in this environment.
In contrast to gold’s decline, silver prices remained unchanged for the second consecutive day. One kilogram of silver continues to trade at ₹2.75 lakh, while smaller denominations such as 100 grams and 10 grams are priced at ₹27,500 and ₹2,750 respectively.
This stability suggests that silver is receiving some support from industrial demand, even as broader market volatility persists.
On the commodities exchange, gold opened slightly lower but managed to hold above the ₹1,52,000 level. Analysts suggest that if prices move past ₹1,55,000, an upward trend toward ₹1,58,000 could follow.
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However, failure to sustain above key resistance levels may push prices lower toward ₹1,50,000. Silver is trading above ₹2,52,000. Resistance is expected around ₹2,60,000, while a drop below ₹2,48,000 could trigger further correction.
With geopolitical tensions ongoing and inflation concerns rising, the outlook for precious metals remains cautious. While short-term volatility is likely, global developments will continue to play a crucial role in shaping the price movements.
