New Delhi: Gold prices have fallen again after a day’s rise. In the capital, Delhi, 24-carat gold fell to ₹121,620 per 10 grams on the morning of October 31, while 22-carat gold is trading at ₹111,490 per 10 grams. This decline is primarily linked to international economic indicators and currency market movements.
Impact of the US Federal Reserve
The US central bank, the Federal Reserve, recently cut its key interest rates by a modest 0.25 percent. However, Fed Chairman Jerome Powell has clarified that further rate cuts are unlikely in the near future.
Gold Prices Fall by ₹1,000 While Silver Soars by ₹3,300 in Delhi Markets
This statement signals to investors that monetary easing in the US economy will be limited, which has strengthened the dollar and weakened gold demand. A stronger dollar makes gold more expensive in international markets, leading to a decline in its price in countries like India.
Easing of US-China Trade Tensions
Another major reason is the easing of trade tensions between the US and China. US President Donald Trump reduced the tariffs imposed on China by 10 percent, from 47 percent.
Following a meeting between Trump and Chinese President Xi Jinping in South Korea, the two countries reached agreement on several issues related to rare earth elements and trade.
This easing of trade relations has led investors to turn to the stock market, reducing demand for gold, considered a safe investment, and driving down prices.
Gold prices in major cities across the country
| City | 22 Carat Gold (₹/10 g) | 24 Carat Gold (₹/10 g) |
|---|---|---|
| Delhi | 111,490 | 121,620 |
| Mumbai | 111,340 | 121,470 |
| Ahmedabad | 110,490 | 121,520 |
| Chennai | 111,340 | 121,470 |
| Kolkata | 111,340 | 121,470 |
| Hyderabad | 111,340 | 121,470 |
| Jaipur | 111,490 | 121,620 |
| Bhopal | 110,490 | 121,520 |
| Lucknow | 111,490 | 121,620 |
| Chandigarh | 111,490 | 121,620 |
The silver market also declined
Like gold, the prices of silver have also declined. On the morning of October 31, silver has come down to ₹ 1,50,900 per kg. However, the spot price of silver in the international market increased by 1.21% to $48.14 per ounce.
This shows that the domestic market has been affected by the strengthening of the rupee and reduction in demand.
Gold-Silver Rate Today: Gold and Silver prices continue to fall across India
Overall, the policies of the Federal Reserve, the strengthening of the dollar, and the easing of tensions between the US and China have put pressure on gold prices. In the coming days, if the dollar remains strong and global trade stabilizes, further decline in gold may be seen.