Gold prices in the national capital witnessed a major drop, falling by Rs 4,100 to Rs 1,21,800 per 10 grams. This sharp fall follows the previous close of Rs 1,25,900 per 10 grams on Monday, according to data from the All India Sarafa Association. Gold of 99.5 percent purity also saw a similar dip, settling at Rs 1,21,200 per 10 grams including taxes.
Factors Behind the Price Drop
The fall in gold prices has been linked to easing geopolitical concerns between the United States and China, which weakened the metal’s safe-haven appeal. Analysts noted that gold faced continued selling pressure as investors moved away from safe assets. Saumil Gandhi, Senior Analyst at HDFC Securities, explained that the decline was driven by technical selling after gold failed to stay above the $4,000 level, marking a three-week low.
Silver Prices Also Fall Sharply
Silver followed a similar trend, recording a steep drop of Rs 6,250 to Rs 1,45,000 per kilogram, compared to the previous close of Rs 1,51,250 per kilogram.
Global Market Overview
In international markets, spot gold continued to trade lower, slipping by $94.36 or 2.37 percent to $3,887.03 per ounce. In the prior session, it had already dropped below the key $4,000 mark, declining by $132.02 or 3.21 percent.
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