Why Did Gold and Silver Prices Plummet This Week?
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Synopsis
Gold and silver buyers rejoice as prices drop sharply this week. With geopolitical tensions easing and a weakening U.S. dollar, both precious metals are now available at more affordable rates. Discover the latest trends and expert predictions for the upcoming weeks in this insightful analysis.
Key Takeaways
- Gold prices have fallen below Rs 96,000 per 10 grams.
- Silver prices have dipped under Rs 1.06 lakh per kilogram.
- Gold has seen a 25.76% increase this year.
- Silver prices have risen by 22.29% since January.
- Experts predict gold could range from $3,500 to $3,700 soon.
New Delhi, June 29 (NationPress) There's encouraging news for those in the market for gold and silver, as the prices of these valuable metals have dropped this week. Gold is now priced under Rs 96,000 per 10 grams, while silver has fallen below Rs 1.06 lakh per kilogram.
As reported by the India Bullion and Jewellers Association (IBJA), the cost of 24-carat gold is currently Rs 95,784 per 10 grams, a significant decrease from Rs 98,691 just a week ago, marking a decline of Rs 2,907.
Furthermore, the price of 22-carat gold has dropped to Rs 87,738 from Rs 90,404 per 10 grams, and 18-carat gold has fallen from Rs 74,018 to Rs 71,838 per 10 grams.
Silver prices also experienced a decline, decreasing by Rs 1,582 to Rs 1,05,193 per kilogram from the previous Rs 1,06,775.
It's worth noting that silver had peaked at an all-time high of Rs 1,09,550 per kg on June 18.
The international market reflects this trend, with gold on COMEX falling to $3,300 per ounce from $3,400 earlier, while silver has dropped to $36 per ounce.
Experts attribute the decline in prices to recent global developments, including the easing of tensions between Israel and Iran, indications of global stability, and a weakening US dollar.
Despite this week's downturn, both gold and silver have experienced a robust surge since the beginning of the year.
Since January 1, the price of 24-carat gold has risen from Rs 76,162 to Rs 95,784 per 10 grams, reflecting an increase of Rs 19,622 or 25.76%.
Similarly, silver prices have risen by Rs 19,176 or 22.29%, moving from Rs 86,017 to Rs 1,05,193 per kilogram.
Meanwhile, in an earlier report this month, experts indicated that gold prices are likely to rise sharply due to renewed geopolitical tensions in the Middle East, which could increase global uncertainty.
According to the report, experts suggest that gold may trade within the range of $3,500 to $3,700 in the upcoming weeks.
Akshay Chinchalkar of Axis Securities remarked that as long as spot gold remains above $3,314, it may trend higher towards $3,770.
Point of View
I believe that the recent decline in gold and silver prices reflects the dynamic nature of global markets. While this week shows a drop, the overall trend indicates a strong rally since the start of the year. It's essential for investors to stay informed about geopolitical developments and economic indicators that influence these fluctuations.
NationPress
29/06/2025
Frequently Asked Questions
What caused the recent drop in gold and silver prices?
The recent decline in gold and silver prices can be attributed to easing geopolitical tensions, particularly between Israel and Iran, along with a weakening US dollar.
How have gold and silver prices changed this week?
This week, 24-carat gold dropped to Rs 95,784 per 10 grams, while silver fell to Rs 1,05,193 per kilogram.
What is the long-term trend for gold and silver prices?
Despite this week's drop, both gold and silver prices have seen significant increases since the beginning of the year, indicating a strong overall trend.
What are experts predicting for gold prices in the coming weeks?
Experts predict that gold could trade in the range of $3,500 to $3,700 in the near future, especially with any fresh geopolitical tensions.
Is now a good time to invest in gold and silver?
Given the recent price declines, it may present an opportunity for buyers to invest in gold and silver at lower prices.
