Gold Prices Drop Sharply from the One-Lakh Mark

Gold prices, which crossed the ₹1 lakh mark earlier this week, have declined significantly due to weakening domestic demand in the spot market and negative signals from international markets.

According to data from the India Bullion and Jewellers Association, the price of 24-carat gold stood at ₹95,669 on Friday morning. In Kolkata’s spot market, data from the West Bengal Bullion Merchants and Jewellers Association showed that gold prices fell by ₹700 on Friday to reach ₹95,800, compared to ₹96,500 on Thursday.

Prices also declined on the Multi Commodity Exchange. For June contracts, the price of 10 grams of gold dropped by ₹669 and was trading at ₹95,243. Analysts attributed this decline to international market weakness and reduced demand in the spot market. In the New York market, gold futures fell by 1.15 percent to $3,310.98 per ounce.

Looking at the price trend over the past week: gold traded at ₹96,587 on April 21, ₹99,100 on April 22, ₹95,784 on April 23, ₹96,075 on April 24, and ₹95,699 on April 25. Notably, as gold neared the ₹1 lakh mark on Tuesday, investors reportedly began profit booking.

Silver prices, on the other hand, remained relatively stable. Despite a slight dip on Thursday, the price of silver in Mumbai on Friday held firm at ₹1,00,900 per kilogram, staying above the ₹1 lakh mark.

The recent surge in gold prices was driven by global economic uncertainties and fears of a recession in the United States. However, analysts had earlier predicted that prices would face profit booking once the ₹1 lakh level was reached.

Although there has been a short-term correction in prices, analysts maintain a positive outlook for gold throughout the year. Some suggest that the current decline could be seen as a buying opportunity. International market rates, import duties, taxes, and exchange rate fluctuations are key factors influencing gold prices in India.