Gold prices in India rebounded by ₹800 to ₹1.63 lakh per 10 grams on Tuesday, while silver rates dropped by ₹5,000 to ₹2.71 lakh per kilogram due to weak industrial demand and subdued global trends. According to local marketmen, the yellow metal of 99.9% purity rose from Monday's closing level of ₹1.62 lakh per 10 grams. The price recovery came as hopes for renewed US-Iran negotiations improved, easing concerns over prolonged energy-driven inflation pressures. Sentiment improved after US President Donald Trump said that he had suspended a planned military strike on Iran, indicating that a diplomatic resolution with Tehran might still be achievable.
In the international market, spot gold was trading 0.47% lower at $4,544.78 per ounce as of latest reports, while silver declined 2.01% to $76.12 per ounce. According to Praveen Singh, Head of commodities at Mirae Asset ShareKhan, spot gold prices are trading lower at around $4,540 per ounce as oil prices, though having eased slightly, remain elevated. The mixed global trends continue to influence domestic precious metal prices, with investors now awaiting the minutes of the US Federal Open Market Committee (FOMC) meeting for further cues on the interest rate cycle.
As per Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, gold prices rebounded as hopes for renewed US-Iran negotiations improved, easing some concerns over prolonged energy-driven inflation pressures. The easing of geopolitical tensions led to a slight decrease in crude oil prices, which provided support to precious metals following recent sharp declines. Additionally, bargain buying and short covering in the aftermath of last Friday's significant sell-off have contributed to the recent recovery in precious metals. However, bullion prices may remain volatile in the near-term amid uncertainty over global interest rates, crude oil prices and geopolitical developments in West Asia.
In Mumbai, the financial heart of the country, 24-carat gold is retailing at approximately ₹1.59 lakh per 10 grams. Kolkata follows a similar trend, with its gold rate reported at ₹1.59 lakh. Both cities are ahead of the national capital, Delhi, where the 24-carat rate currently stands at ₹1.59 lakh, according to Bullions website. The southern markets continue to record the highest figures in the country, with Chennai leading the metros at ₹1.60 lakh per 10 grams, followed by Hyderabad at ₹1.59 lakh and Bengaluru at ₹1.59 lakh. The latest recovery in gold prices reflects the improved sentiment across major Indian cities.
Mumbai is the epicenter of the silver price rally, with current rates at ₹2.71 lakh per kilogram. In the national capital, Delhi silver is keeping pace with Mumbai, currently priced at ₹2.71 lakh per kilogram. Chennai and Hyderabad are seeing silver trade at approximately ₹2.71 lakh and ₹2.70 lakh per kilogram respectively, while Bengaluru follows closely with rates hovering around ₹2.70 lakh per kilogram. Silver rates in Kolkata are currently trading at roughly ₹2.70 lakh per kilogram. The ₹5,000 decline in silver prices reflects the impact of weak industrial demand and subdued global trends on the white metal.
