Why are gold and silver prices declining for the second consecutive day?

Synopsis
Key Takeaways
- Gold and silver prices have decreased for two consecutive days.
- 24-carat gold is now priced at Rs 97,500 per 10 grams.
- The spot market is showing a downward trend, while futures are slightly up.
- Upcoming US economic data could guide future price movements.
- Analysts remain cautiously optimistic about long-term trends.
New Delhi, July 16 (NationPress) Both gold and silver experienced a decline during the trading session on Wednesday, marking the second consecutive day of falling prices this week amidst ongoing uncertainty surrounding US tariffs.
The rate for 24-carat gold decreased by Rs 416, falling from Rs 97,916 to Rs 97,500 per 10 grams, as reported by the India Bullion and Jewellers Association (IBJA). In a similar vein, 22-carat gold saw a reduction of Rs 381, dropping from Tuesday's price of Rs 89,691 to Rs 89,310 per 10 grams.
Moreover, the price of 18-carat gold fell from Rs 73,437 per 10 grams in the previous session to Rs 73,125 per 10 grams.
In line with this trend, silver prices also dropped from Rs 1,11,997 per kilogram to Rs 1,11,200, a decrease of Rs 797.
Looking ahead, key US economic data—such as PPI and jobless claims—will likely influence future market movements, according to analysts.
Interestingly, the futures market is on an upward trajectory. Despite the decline in spot prices, both gold and silver showed positive movements in the futures market. Gold for delivery on August 5, 2025, was trading at Rs 97,415 on the Multi Commodity Exchange (MCX), reflecting a rise of 0.21 percent.
Silver futures for delivery on September 5, 2025, were priced at Rs 1,11,805, which was up 0.29 percent.
On the global stage, both gold and silver saw slight increases, with silver rising by 0.34 percent to $38.24 per ounce on the Comex exchange, while gold increased by approximately 0.27 percent to $3,345.60 per ounce.
According to Julius Baer, Head of Economics at Carsten Menke, “Gold is currently in a consolidation phase, with prices fluctuating between $3,300 and $3,500 per ounce. The market lacks an immediate trigger to reignite the recent rally, even though the fundamental backdrop remains favorable.”
“While central bank purchases are still robust, they are not as strong as earlier this year. We still perceive a favorable long-term outlook. Conversely, silver has seen renewed investor interest, but its potential to catch up to gold appears limited. We are raising our price targets but are adjusting our outlook to Neutral,” Baer added.