There is good news for gold and silver buyers as precious metal prices have seen a significant drop in the domestic market. After remaining at record high levels for several weeks, gold and silver prices have fallen sharply, bringing much-needed relief to jewellers, investors, and common consumers. According to the latest market rates, gold has come down to around ₹1.50 lakh, while silver is trading near ₹2.65 lakh, marking a substantial correction from their recent peaks.
Sharp Fall in Gold Prices
Gold prices, which were hovering at historically high levels due to global uncertainty, inflation concerns, and geopolitical tensions, have now eased considerably. The decline is attributed to a combination of factors, including a stronger US dollar, easing global inflation, and reduced safe-haven demand. As international gold prices softened, the impact was clearly seen in the Indian bullion market as well.
Market experts say that profit booking by investors also played a key role in pulling prices down. Many investors who had bought gold at lower levels chose to book profits when prices surged, leading to increased selling pressure. This has resulted in gold prices correcting to around ₹1.50 lakh, offering a fresh buying opportunity for those who were waiting for a dip.
Silver Prices Also Witness Heavy Correction
Silver prices have also witnessed a sharp decline. After touching record highs, silver has now slipped to nearly ₹2.65 lakh. The fall in silver prices is linked not only to global cues but also to weaker industrial demand in some sectors. Since silver has both investment and industrial uses, any slowdown in industrial activity directly affects its prices.
Analysts believe that volatility in global commodity markets and changing interest rate expectations have contributed to the recent fall in silver prices. However, despite the decline, long-term fundamentals for silver remain strong due to its growing demand in renewable energy, electric vehicles, and electronics.
Relief for Consumers and Jewellery Industry
The fall in prices has brought major relief to consumers, especially those planning to buy jewellery for weddings and upcoming festivals. High prices had dampened demand in recent months, but the current correction is expected to revive buying interest. Jewellers are hopeful that lower prices will boost footfall and improve overall sales.
For small investors, the price correction provides an opportunity to invest in gold and silver at relatively lower levels. Financial advisors suggest that investors should adopt a staggered buying approach rather than investing a lump sum, considering the ongoing volatility in global markets.
What Lies Ahead?
Experts caution that gold and silver prices may continue to remain volatile in the short term due to global economic developments, central bank policies, and geopolitical factors. However, any further decline could be limited as long-term demand for precious metals remains intact.
In conclusion, the recent drop in gold and silver prices has come as a big relief for buyers. With gold at around ₹1.50 lakh and silver near ₹2.65 lakh, market participants are closely watching future trends to make informed buying and investment decisions.
