Gold Silver prices drop after US Fed policy update; Is this the right rime to invest?

According to experts, long-term investors can buy silver at the dip during price drops, while gold is better suited to hedge against sudden economic shocks. In 2025, increased demand from global central banks and investors supported gold prices.

New Delhi: Gold and silver prices fell on Thursday following the US Federal Reserve's new policy announcement. Gold futures on MCX opened 1.27% lower at Rs 1,19,125 per 10 grams, compared to the previous close of Rs 1,20,666. Silver prices also fell 0.4% to Rs 1,45,498 per kilogram, compared to the previous close of Rs 1,46,081.

By 9:20 am, gold was trading at Rs 1,18,839 per 10 grams, down Rs 1,827 (1.51%). Silver, on the other hand, fell Rs 1,411 (0.97%) to reach Rs 1,44,670 per kilogram.

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Why Did Prices Fall?

Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA) and Chairperson of Aspect Global Ventures, explained that the dollar's strength and reduced global tensions have reduced industrial and investment demand for metals. This is why gold and silver prices have fallen from recent highs.

According to Aksha Kamboj, both metals have recently recovered, but silver's position is more uncertain and is influenced by movements in industrial demand. Gold's demand, on the other hand, remains safe and stable over the long term.

Recent Trading Sessions

Both gold and silver have been down in recent trading. Gold recorded its biggest single-day drop in 12 years. Experts believe that gold is traditionally a safe investment. It performs well in times of economic uncertainty, inflation, or loose central bank policies.

In 2025, increased demand from global central banks and investors supported gold prices.

Why Are Gold Prices Falling? Key Reasons Behind the Recent Decline

Gold or Silver: Where to Invest?

Experts say both metals are good investment options, but it's a matter of portfolio weighting.

Gold: Offers safety and stability. Gold is best for investors seeking long-term wealth protection or avoiding economic uncertainty.

Silver: Higher risk, but offers higher returns when industrial demand increases. It's also suitable for traders and speculators.

According to experts, long-term investors can buy silver at the dip during price drops, while gold is better suited to hedge against sudden economic shocks.

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What to Consider When Buying Gold

• Purity matters: 24K is highest purity but softer for jewellery; 22K is common for Indian jewellery.
• Hallmarking: Ensure the piece is hallmarked (eg. BIS hallmark) to guarantee purity and authenticity.
• Making charges & GST: These vary widely by design and jeweller, they add significantly to cost and affect resale.