The Indian bullion market today saw a continued downturn in. The prices of gold and silver for the second consecutive day. This decline is primarily attributed to global factors, notably the strengthening US dollar and the prevailing expectations regarding interest rate cuts by the US Federal Reserve. As the dollar gains strength, investor preference often shifts away from safe-haven assets like gold and silver, leading to a decrease in their demand and, consequently, their prices. This ongoing depreciation comes at a time when markets are closely monitoring upcoming economic indicators and the policy stances of central banks worldwide, which Importantly influence commodity prices.
Gold Prices in the Capital City
In the nation's capital, Delhi, the price of 24-carat gold saw a marginal decrease of ₹10 per ten grams today, making it slightly more affordable for both investors and consumers. Similarly, 22-carat gold also experienced a ₹10 per ten grams reduction. This marks the second consecutive day of decline, reflecting the current market pressure. Over the past two days, 24-carat gold prices have fallen by a notable ₹720 per ten grams, while 22-carat gold has dropped by ₹660 per ten grams during the same period. This continuous fall might present an opportune moment for those looking to invest in gold, although market volatility necessitates a cautious approach.
Mirroring gold's trajectory, silver prices have also been on a downward trend. In Delhi, the price of one kilogram of silver has decreased for the second consecutive day, while after a day of stability, silver prices have collectively fallen by ₹1100 per kilogram over the last two days. As of November 25th, silver is trading at ₹1,62,900 per kilogram. In Delhi, with a ₹100 per kilogram drop recorded today alone. This decline could be a concern for recent silver investors but might appeal to buyers looking to purchase the metal at a lower price point. Other major metropolitan cities like Mumbai and Kolkata are also seeing silver trade at similar rates, while Chennai records the highest price among the four major metros at ₹1,70,900 per kilogram.
Current Gold Rates Across Major Cities
Gold prices exhibit slight variations across India's ten major cities, influenced by local demand-supply dynamics, transportation costs, and regional taxes, while in Delhi and Lucknow, 22-carat gold is priced at ₹1,14,840 per ten grams, with 24-carat gold at ₹1,25,270. Cities such as Mumbai, Kolkata, Bengaluru, and Hyderabad offer 22-carat gold at ₹1,14,690 and 24-carat gold at ₹1,25,120, while chennai stands out with the highest prices, where 22-carat gold is ₹1,15,190 and 24-carat gold is ₹1,25,660. Jaipur's rates are ₹1,15,110 for 22-carat and ₹1,25,560 for 24-carat gold, while Patna sees prices of ₹1,14,740 for 22-carat and ₹1,25,170 for 24-carat. Ahmedabad mirrors Delhi's prices, with 22-carat gold at ₹1,14,840 and 24-carat gold at ₹1,25,270. These city-wise differences allow consumers to compare prices before making a purchase.
Historical Fluctuations in Silver Prices
Silver prices have experienced significant volatility in recent times. Following a day of stability, silver has fallen for the second consecutive day, leading. To a cumulative drop of ₹1100 per kilogram in Delhi over the past two days. Prior to this recent decline, silver had remained stable for one day, which was preceded by a sharp increase of ₹3000 per kilogram. This surge, however, proved to be short-lived, as it was preceded by a substantial drop of ₹7000 per kilogram over two consecutive days. This pattern underscores the highly volatile and unpredictable nature of the silver market, where prices can fluctuate rapidly based on global economic signals and investor sentiment. As of November 25th, silver is trading at ₹1,62,900 per kilogram in Delhi, reflecting a ₹100 per kilogram decrease today.
Future Outlook for Gold
Looking ahead, HSBC, in its 'Think Futures 2026' report, projects a continued upward trend for gold prices. The report highlights that persistent gold purchases by central banks globally, coupled with sustained investments in Gold Exchange Traded Funds (ETFs), will provide solid support for gold prices. According to HSBC's analysis, gold prices are currently in a consolidation phase, hovering around $4,000 per ounce, while this short-term consolidation is expected to continue for some time, after which gold is anticipated to regain momentum and resume its upward trajectory. This forecast is crucial for investors considering long-term positions in gold, as it suggests underlying strength in the market despite short-term fluctuations.
Central Banks' Role and Gold Reserves
A significant factor contributing to the bullish outlook for gold. Prices is the increasing share of gold in central banks' reserves. Since 2022, there has been a notable rise in the proportion of gold held by central banks within their overall reserves. In 2022, this share stood at 13%, and it's projected to increase to 22% by the second quarter of 2025, while during this same period, gold prices surged from $2,000 per ounce to over $4,000 per ounce, marking an impressive jump of approximately 125%. The HSBC report explicitly states that the consistent and substantial buying of gold by central banks has been a major driver of this price appreciation. The report further anticipates that central banks will continue their gold purchasing activities, which is expected to provide additional support to global gold prices and sustain their upward potential in the future. This trend reinforces gold's appeal as an investment, particularly amidst global economic uncertainties.
