Gold Prices Dip Significantly; Buyers Relieved Amid Wedding Season

Gold buyers in India received welcome news on Thursday as gold prices recorded a significant decline. Silver prices also followed suit. Analysts attribute this downward trend to positive global developments.

According to data released by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by ₹2,375 per 10 grams, dropping from ₹93,859 to ₹91,484. Similarly, the price of 22-carat gold declined from ₹85,975 to ₹83,799 per 10 grams. The price of 18-carat gold also decreased, falling from ₹70,394 to ₹68,613.

Just a few weeks ago, on April 22, the price of 24-carat gold had nearly reached the ₹1 lakh mark. This sudden drop has brought some optimism to buyers.

Silver prices also witnessed a fall. The price of one kilogram of silver dropped by ₹2,297, declining from ₹96,400 to ₹94,103.

This decline impacted the domestic futures market as well. On the Multi Commodity Exchange (MCX), gold futures for June 5 traded down by 1 percent at ₹91,325, while silver futures for July 4 also dropped by nearly the same margin to ₹94,458.

Market experts cited easing trade tensions between the United States and China as a major factor behind the fall in gold prices. When geopolitical uncertainty diminishes, interest in safe-haven investments like gold tends to decrease. In international markets, gold prices hit a monthly low. On COMEX, gold dropped by 1.1 percent to trade at $3,141.35 per ounce—a substantial decrease from the peak of $3,500 recorded on April 22.

With the ongoing wedding season and the recent conclusion of Akshaya Tritiya, there is an anticipated rise in domestic demand for both gold and silver.