Gold Prices Extend Decline Across India; 24K Rates Slip to ₹1.56 Lakh in Key Cities

Gold buyers received some relief on June 5 as precious metal prices continued their downward trend across major Indian cities. The latest market data shows that both gold and silver have witnessed further corrections, bringing rates lower than recent highs seen earlier this year.

The decline comes at a time when investors are closely tracking global economic developments, central bank policy decisions, and geopolitical uncertainties that continue to influence bullion markets worldwide.

Gold Becomes More Affordable in Major Indian Markets

After several weeks of volatility, gold prices have softened further in domestic markets. The correction has been observed in multiple metropolitan cities, including Delhi, Jaipur, Mumbai, Lucknow, Kolkata, Hyderabad, and Chennai.

In the national capital and several northern cities, 24-carat gold is now trading at approximately ₹1,56,250 per 10 grams, while 22-carat gold has fallen to around ₹1,43,240 per 10 grams.

The latest decline is attracting attention from jewelry buyers and investors who have been waiting for prices to cool after gold touched record levels earlier this year.

Latest Gold Rates in Major Cities

Among the listed cities, Chennai continues to record the highest gold prices, while Mumbai, Kolkata, and Hyderabad remain among the relatively cheaper markets.

Silver Prices Also Continue to Correct

The decline has not been limited to gold alone. Silver prices have also moved lower in domestic markets.

On June 5, silver was trading at approximately ₹2,79,900 per kilogram, extending its recent correction.

The white metal has remained highly volatile throughout the year. Earlier in January, silver had surged beyond the ₹4 lakh per kilogram mark, driven by strong industrial demand and global uncertainty.

However, recent profit-booking and changing market sentiment have contributed to the ongoing decline.

What Is Driving the Fall in Gold Prices?

Several global and domestic factors are influencing bullion prices.

1. Global Economic Uncertainty

Investors continue to monitor developments in international markets, particularly concerns related to economic growth, inflation, and monetary policy decisions.

2. Geopolitical Developments

Ongoing tensions in West Asia and uncertainty surrounding diplomatic negotiations have created mixed signals for precious metals.

While geopolitical risks generally support gold demand as a safe-haven asset, changing expectations regarding conflict resolution can trigger price corrections.

3. Central Bank Decisions

Market participants are also closely watching monetary policy announcements from major central banks.

Interest rate expectations often have a direct impact on gold prices because higher rates tend to reduce the appeal of non-yielding assets such as gold.

4. Investor Sentiment

After a strong rally earlier this year, many investors have chosen to book profits, contributing to short-term weakness in precious metal prices.

RBI's Gold Reserve Position Remains Unchanged

Recently, speculation emerged regarding the possibility of large-scale gold sales by the Reserve Bank of India (RBI).

However, the central bank clarified that its physical gold holdings remain unchanged.

According to official information, India's gold reserves continue to stand at approximately 880.52 tonnes, with no reduction in the country's strategic bullion stockpile.

The clarification helped ease concerns among investors regarding the country's reserve management strategy.

Is This a Good Time to Buy Gold?

The recent correction may create opportunities for long-term buyers and jewelry purchasers.

Many market experts believe that:

• Short-term volatility is likely to continue.

• Global uncertainty still supports gold over the long run.

• Festival and wedding season demand could provide price support later in the year.

• Central bank purchases worldwide remain a positive factor for bullion.

However, investors are advised to assess their financial goals and investment horizon before making fresh purchases.

International Gold and Silver Prices

In global markets, spot gold continues to trade at elevated levels despite recent corrections.

International bullion prices remain sensitive to:

• Inflation data

• Interest rate decisions

• Currency movements

• Geopolitical developments

• Central bank buying activity

Similarly, silver prices continue to respond to both investment demand and industrial consumption trends.

Final Takeaway

Gold prices have extended their decline across several Indian cities, bringing 24-carat rates closer to ₹1.56 lakh per 10 grams in markets such as Delhi, Jaipur, Lucknow, and Chandigarh. Silver has also remained under pressure, trading below recent highs.

While the correction offers some relief to buyers, market experts believe global developments, central bank actions, and geopolitical events will continue to dictate the direction of precious metals in the coming weeks. Investors and jewelry buyers should keep a close watch on market trends before making major purchase decisions.