Gold prices drop by Rs 8,455 in a week; silver falls Rs 3,700 per kg as festive demand eases
Gold silver price update: Gold prices in India witnessed a sharp decline this week, falling by Rs 8,455 per 10 grams to
Rs 1,22,419, according to the India Bullion and Jewellers Association (IBJA). On October 17, gold had touched its all-time high of Rs 1,29,584 per 10 gram.
As per IBJA data, on October 24, gold became cheaper by Rs 935 compared to the previous day’s rate of Rs 1,23,354 per 10 gram on October 23. Silver too recorded a steep drop of Rs 3,700, trading at Rs 1,47,750 per kg, down from Rs 1,51,450 per kg a day earlier. From its peak, silver prices have now fallen by Rs 30,350 per kg.
Notably, IBJA prices do not include 3% GST, making charges, or jewellers’ margins. As a result, retail rates in different cities may vary. The Reserve Bank of India (RBI) uses these IBJA rates to determine Sovereign Gold Bond prices, while several banks rely on them to set gold loan values.
Reasons behind decline in gold and silver prices:
With the conclusion of Diwali and other festive occasions, the demand for gold and silver in India has eased significantly. Precious metals like gold and silver are often considered ‘safe-haven’ assets. As global geopolitical tensions eased, investors turned away from these assets, leading to a price correction.
After a strong rally, many investors started booking profits. Technical indicators like the Relative Strength Index (RSI) had signaled an overbought zone, prompting traders and dealers to initiate selling.
Despite the recent correction, gold prices have surged by Rs 46,257 so far this year. On December 31, 2024, 10 gm of 24-carat gold were priced at Rs 76,162, compared to the current Rs 1,22,419.
Similarly, silver has become costlier by Rs 61,733 in the same period, rising from Rs 86,017 per kg at the end of 2024 to
Rs 1,47,750 per kg now.
- With inputs from agencies
