Gold prices took a sharp dip on Wednesday, falling by Rs 900 to settle at Rs 98,550 per 10 grams in the national capital. This drop aligns with a broader weakness in international market trends, even as festive demand during Akshaya Tritiya helped limit further losses.
Gold Faces Pressure Despite Festive Support
According to the All India Sarafa Association, gold of 99.9% purity declined from the previous day’s close of Rs 99,450. Similarly, gold of 99.5% purity fell to Rs 98,100 per 10 grams, also marking a Rs 900 drop. Despite the dip, jewellers reported strong demand during Akshaya Tritiya—a key Hindu festival traditionally associated with gold purchases.
Thanks to the ongoing festivities, jewellers are estimating around a 35% rise in sales value compared to last year, driven mainly by elevated gold prices. However, in terms of volume, gold sales are expected to hover around 20 tonnes, remaining largely flat year-over-year. Notably, during Akshaya Tritiya in 2024, which fell on May 10, gold was priced at Rs 72,300 per 10 grams—a significant difference from current levels.
Silver Sinks Amid Global Pullback
Meanwhile, silver prices saw a steep decline, dropping Rs 4,000 to Rs 98,000 per kg, down from Rs 1,02,000 the previous day. The downward trend is closely tied to global cues, where spot silver fell 1.83% to $32.33 per ounce. Spot gold also slumped, shedding $43.35 or 1.31% to trade at $3,273.90 per ounce.
The pressure on gold was further intensified after the U.S. administration made moves to ease the impact of auto tariffs. Comments from U.S. Commerce Secretary Howard Lutnick hinted at a potential trade agreement, though no specifics were shared. These geopolitical signals added volatility to an already cautious market.
Market Trends and Outlook
The most-traded gold futures contract for June on the Multi Commodity Exchange (MCX) plunged Rs 1,639, or 1.71%, landing at Rs 93,953 per 10 grams. Analysts suggest this decline reflects shifting market trends, especially in light of evolving U.S. trade dynamics and macroeconomic expectations.
“All eyes are now on upcoming U.S. data releases,” said Chintan Mehta, CEO of Abans Financial Services. “Reports on Q1 GDP growth, PCE inflation, and April’s job data will likely influence the Federal Reserve’s stance and the broader economic outlook.”
For now, precious metal investors are navigating a complex mix of global uncertainty, domestic demand surges, and shifting central bank policies. The next few weeks could prove pivotal in shaping short-term price movements across both gold and silver markets.