Why Did Gold Prices Drop While Silver Prices Surged?
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Synopsis
In a volatile market, gold prices dipped while silver prices surged, creating a distinct contrast. This article explores the factors influencing these trends, offering insights into future price movements and trade tariff implications. Stay updated with the latest market changes and their impact on precious metals.
Key Takeaways
- Gold prices have declined slightly.
- Silver prices have significantly surged.
- Domestic market dynamics are influenced by global trends.
- Market participants are closely watching trade tariff developments.
- Precious metals are expected to remain volatile.
New Delhi, Aug 5 (NationPress) In a day of mixed results, gold and silver prices fluctuated in both local and international markets on Tuesday. Notably, silver prices surged considerably, while gold prices experienced a slight decline.
The cost of 24-carat gold fell by Rs 91, bringing it down to Rs 1,00,076 per 10 grams, compared to Rs 1,00,167 on Monday, as reported by the India Bullion and Jewellers Association (IBJA).
Moreover, the price for 10 grams of 22-carat gold decreased from Rs 91,753 to Rs 91,670. Similarly, 18-carat gold saw a drop, falling from Rs 75,125 the previous day to Rs 75,057 per 10 grams.
Conversely, silver prices experienced an uptrend, climbing Rs 522 from Rs 1,11,900 per kg to Rs 1,12,422.
This trend was mirrored in the futures market.
Gold futures set for delivery on October 3, 2025, decreased by 0.37 percent to Rs 1,00,830 per 10 grams on the Multi-Commodity Exchange (MCX). In contrast, silver futures for delivery on September 5, 2025, rose by 0.33 percent to Rs 1,12,160/10 grams.
On the global stage, while silver prices remained robust, gold prices continued to slide. Silver increased by 0.65 percent to $37.58 per ounce on Comex, whereas gold fell by 0.31 percent to $3,416.20 per ounce.
According to Jateen Trivedi from LKP Securities, "Gold traded weakly at Rs 1,00,780 due to resistance faced by Comex gold around the $3370–$3375 mark, while the rupee's stability around 87.80 added pressure to domestic prices."
Market observers are closely monitoring Manufacturing PMI data, but the primary concern remains the ongoing trade tariff negotiations, with the U.S. looking to adjust tariffs to its advantage.
Trivedi added, "Despite the recent decline, gold continues to reflect the broader impacts of trade tariff uncertainties and a weaker dollar, supporting the overall trend. Gold is anticipated to trade within a volatile range of Rs 99,000–Rs 1,01,500."
Point of View
I emphasize the importance of understanding market fluctuations in precious metals. The current dynamics of gold and silver prices reflect broader economic trends, particularly trade tariffs and currency stability. It's crucial for investors to stay informed and adaptable in this ever-changing landscape.
NationPress
05/10/2025
Frequently Asked Questions
What caused the drop in gold prices?
The decrease in gold prices is attributed to resistance levels in the Comex market and pressure from a stable rupee.
Why are silver prices increasing?
Silver prices are rising due to strong demand and market dynamics that favor its valuation amid trade uncertainties.
What is the current price of 24-carat gold?
As of now, the price of 24-carat gold is Rs 1,00,076 per 10 grams.
How do global markets affect local gold and silver prices?
Global market trends, including currency strength and international demand, significantly influence local precious metal prices.
What should investors watch for in the upcoming weeks?
Investors should monitor manufacturing PMI data and trade tariff developments that could impact precious metal prices.
