Gold price drops by ₹1,600; silver also becomes cheaper; check the current rates.

Gold and silver prices keep falling. On Thursday, gold prices fell by ₹1,600, bringing the rate to ₹1.52 lakh.

A drop of ₹1,600 in gold prices was recorded on Thursday in the bullion market of the national capital, Delhi. Consequently, the price has settled at ₹1.52 lakh per 10 grams. This marks the fourth consecutive session of falling gold prices.

Factors such as the strengthening US dollar and rising crude oil prices are responsible for this trend. According to local traders, the price of 99.9% purity gold fell by ₹1,600 from Wednesday's closing rate of ₹1.54 lakh per 10 grams to ₹1,52,400 per 10 grams (inclusive of all taxes).

Silver also becomes cheaper.

Meanwhile, silver prices also witnessed a decline. After remaining stable for the previous two days, silver prices dropped by ₹5,000 on Thursday to settle at ₹2.37 lakh per kilogram (inclusive of all taxes). The previous day—Wednesday—silver had closed at ₹2.42 lakh per kilogram. Traders noted that the downward trend in prices persisted due to continuous selling in gold.

Traders attributed this weakness to poor global cues and profit-booking at higher levels. Silver was more significantly affected due to the inherent volatility in its prices. Increased selling pressure, linked to industrial demand, caused it to end the day well below its previous closing price. They added that the rupee's depreciation against the US dollar to the 95.96 level provided some support to gold and silver prices in the domestic market, thereby limiting the extent of the decline. ...

Here is why prices are falling

According to a report by news agency PTI, Saumil Gandhi—Senior Analyst (Commodities) at HDFC Securities—stated that domestic gold prices have declined due to weak global cues and a drop in retail demand. He noted that a strong dollar and rising bond yields continued to impact precious metals.

This pressure was mirrored in overseas markets, where spot gold fell by $33.74 (approximately one percent) to $4,253.61 per ounce, while silver dropped 1.4 percent to $63.56 per ounce. A surge in crude oil prices also proved to be another negative factor for precious metals.