Gold and Silver Prices Drop Sharply Across Markets

Precious metal prices fell again on Tuesday as trading began in the evening, with gold dropping more than 2,000 rupees to fall below 1.41 lakh rupees per 10 grams on the Multi Commodity Exchange, marking a decline of about 1.50 percent. Gold has now fallen by 50,000 rupees per 10 grams from its all-time high. Silver prices also dropped by about 2 percent on the exchange, becoming cheaper by nearly 3,400 rupees and slipping to 1,83,788 rupees per kilogram during Tuesday evening trade. January rates had touched 4.21 lakh rupees per kilogram, leaving silver down by about 2.40 lakh rupees from that peak and pushing prices to a one-year low.

Market Causes

Global uncertainties and expectations of interest rate hikes by the US Federal Reserve have increased pressure on bullion values. Higher interest rates raise the holding cost of non-interest-paying assets like gold and silver, reducing their appeal as safe investments. Meanwhile, silver faces heavy profit-booking and selling after its massive surge last year, alongside mixed effects from industrial demand in the solar and electronics sectors. Fluctuations in the US dollar index, bond yields, geopolitical equations, and crude oil prices are directly impacting domestic exchange rates.

Retail Rates

According to ABP News and market data, retail prices vary across cities. In Delhi and Lucknow, 24-carat gold stands at 1,44,750 rupees per 10 grams, while Mumbai, Kolkata, and Patna report rates between 1,44,600 and 1,44,650 rupees. Retail silver is running at 2,05,000 rupees per kilogram in major cities including Delhi, Mumbai, Kolkata, Chennai, Patna, and Lucknow.

Context

Precious metal prices often fluctuate due to global economic shifts, currency values, and changing investor demand for safe-haven assets. Buyers usually face additional costs like making charges and GST when purchasing physical jewelry from local stores.