Gold Prices In India Trading in Gold yesterday fell sharply, continuing a cooling trend that followed recent historic highs. Retail prices of the yellow metal fell by over ₹2,000 per 10 grams in large urban areas mainly as a result of the American dollar strengthening and profit-taking on the Multi Commodity Exchange (MCX) by investors.
Gold Rates, Today (per 10 Grams):
Average retail prices for selected regions depending on the purities on the morning of February 6:
| City | 24K Gold (99.9% Purity) | 22K Gold (Jewellery) | 18K Gold (Low Purity) |
| Delhi | ₹1,51,210 | ₹1,38,609 | ₹1,13,407 |
| Mumbai | ₹1,51,770 | ₹1,39,122 | ₹1,13,827 |
| Chennai | ₹1,52,210 | ₹1,39,525 | ₹1,14,157 |
| Bangalore | ₹1,51,880 | ₹1,39,223 | ₹1,13,910 |
| Hyderabad | ₹1,52,010 | ₹1,39,342 | ₹1,14,007 |
| Kolkata | ₹1,51,560 | ₹1,38,930 | ₹1,13,670 |
Why are Gold Prices So Low?
Just as in the past couple weeks, various macroeconomic forces work together to push precious metals down:
- An increasing US Dollar: (The appreciation of the Greenback has made gold more expensive for holders of foreign currencies -- general demand globally is therefore falling.
- US Fed Sentiment: Investors are adjusting how they see them as Kevin Warsh appears on the Fed nomination list for the next Fed Chair. Market participants expect a hawkish (Higher rate) policy.
Domestic Liquidation
Gold broke through all limits last month (breaking most records with a high of about ₹1.8 lakh per 10g for 24K) where traders are profiting too much on prices to recoup some short term volatility.
Trade Relations
The US is signing an India-US trade arrangement recently reinforcing the Indian Rupee which normally drags down the domestic gold price. Silver Prices Down, too The sell-off didn’t spare the “white metal.” That left silver the most hard hit today, sliding almost 6 per cent on the MCX. Silver is currently trading at only around ₹2.75 lakh per kilogram in cities like Delhi and Kolkata far lower than the ₹3 lakh market average found earlier in the month.
Outlook for Buyers
The drop is welcome relief for retail and wedding-season buyers. But volatility, analysts say, will continue. The short-term trend "is still falling," but there can still be some uncertainty still in the geopolitical world that will lend some support for gold as a safe haven in the long-term.
