Gold and silver prices continued their downward trend, impacted by a strengthening US dollar and sluggish domestic demand for precious metals. Gold prices dropped by ₹10, settling at ₹81,220 per 10 grams, while silver saw a ₹100 decrease, reaching ₹96,400 per kilogram in major Indian cities. The global market volatility, driven by geopolitical tensions and economic uncertainties, has contributed to the ongoing fluctuations in gold and silver prices.
Gold Prices Slip Amid Rebounding Dollar
Gold prices have been facing downward pressure, with the US dollar bouncing back from its previous decline. As the dollar strengthens, gold, typically seen as a safe-haven asset, becomes less attractive, especially when global market conditions stabilize. In the global markets, gold prices were trading at $2,748 an ounce, reflecting a modest rise of 0.13%.
On January 22, 2025, the price of 24K gold fell by ₹10 to ₹81,220 per 10 grams. Domestic demand remains subdued, limiting the potential for further gains in gold prices. The international gold price had spiked earlier in the week due to fears of US tariffs on neighboring countries and China, further increasing the demand for gold as a safe haven investment. However, a steady rebound in the US dollar has led to a price correction in the domestic market.
Gold Price Breakdown Across Major Indian Cities
Here’s the gold price for 24K and 22K gold across key Indian cities:
- Delhi:
- 24K Gold – ₹81,370 per 10 grams
- 22K Gold – ₹74,640 per 10 grams
- Mumbai:
- 24K Gold – ₹81,220 per 10 grams
- 22K Gold – ₹74,490 per 10 grams
- Chennai:
- 24K Gold – ₹81,220 per 10 grams
- 22K Gold – ₹74,490 per 10 grams
- Kolkata:
- 24K Gold – ₹81,220 per 10 grams
- 22K Gold – ₹74,490 per 10 grams
As seen in these figures, gold prices have remained relatively stable with minor fluctuations across various cities due to the lack of strong demand. In contrast to the global trend, India’s domestic gold market continues to feel the pressure of weak local buying activity.
Silver Prices Slide Amid Global Concerns
Silver prices also took a hit on January 22, 2025, declining by ₹100 to ₹96,400 per kilogram. Global market trends, including fears of a tariff war and the US pulling out of international agreements like the Paris Climate Accord, have impacted the performance of silver. Spot silver dropped by 0.04% to $30.82 an ounce, showing a modest decline in early Asian trade.
With the global economy in turmoil, silver demand as a hedge against inflation has weakened. In India, where silver is often viewed as an alternative investment to gold, the demand has also seen a slowdown. This has contributed to the recent price corrections observed in the market.
Silver Price Breakdown Across Major Cities in India
Here is the silver price for major cities in India on January 22, 2025:
- Delhi: ₹96,400 per kilogram
- Mumbai: ₹96,400 per kilogram
- Chennai: ₹103,900 per kilogram
- Kolkata: ₹96,400 per kilogram
The price difference in Chennai can be attributed to local market variations and regional demand dynamics. While the silver market faces downward pressure, it continues to trade in a narrow range.
Gold and Silver Price Comparison: This Week’s Trends
Both gold and silver have remained range-bound this week, with fluctuations driven by the movement of the US dollar, market sentiment, and economic policy developments in the US and other major economies. Here is a comparative look at the prices of gold and silver throughout the week:
| Date | 22K Gold (per 10g) | 24K Gold (per 10g) | Silver Price (per kg) |
|---|---|---|---|
| Jan 22 | ₹74,490 | ₹81,220 | ₹96,400 |
| Jan 21 | ₹74,500 | ₹81,230 | ₹96,500 |
| Jan 20 | ₹74,500 | ₹81,230 | ₹96,500 |
| Jan 18 | ₹74,350 | ₹81,110 | ₹96,500 |
| Jan 17 | ₹73,910 | ₹80,630 | ₹95,600 |
| Jan 16 | ₹73,900 | ₹80,620 | ₹95,500 |
| Jan 15 | ₹73,400 | ₹80,070 | ₹93,500 |
From this table, it’s clear that gold prices have experienced slight fluctuations while silver prices have faced more significant changes due to global economic factors.
Conclusion: Market Outlook for Gold and Silver
Gold and silver prices have been impacted by several factors, including the rebound of the US dollar and weak domestic demand. For gold, while the US dollar’s strength is undermining its price in local markets, the safe-haven appeal still offers some upside potential if global tensions escalate. Similarly, silver faces challenges from geopolitical concerns, which are further exacerbated by US trade policies.
Investors should remain cautious in the short term and monitor developments in both global trade relations and domestic demand patterns before making investment decisions. With both gold and silver prices facing downward pressure, it may be wise to wait for a better entry point before investing.
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