Gold Plunges Rs 3,200 to 10-Month Low of Rs 1.42 Lakh per 10 Grams in Delhi
Gold prices in the national capital recorded a sharp drop of Rs 3,200 to reach a 10-month low of Rs 1.42 lakh per 10 grams on Saturday, extending declines for the second straight session amid an aggressive worldwide retreat in precious metals.
According to the All India Sarafa Association, gold of 99.9 per cent purity sank by Rs 3,200 to settle at Rs 1,42,000 per 10 grams (inclusive of all taxes), down from Friday's closing price of Rs 1,45,200 per 10 grams. The domestic spot price was last quoted at comparable levels on December 26, 2025, when it stood at Rs 1,42,300 per 10 grams.
Silver experienced parallel weakness, tumbling by Rs 4,200 to Rs 1,86,000 per kilogram (inclusive of all taxes) from the previous session's close of Rs 1,90,200 per kg. The industrial and precious metal had not traded at these levels since December 8, 2025, when it changed hands around Rs 1,85,000 per kg.
Global Tailwinds Reverse
The downturn in the domestic spot market follows a severe retreat across global commodity exchanges. In overseas trade, spot gold plunged by USD 145.84, or nearly 4 per cent, to end Friday at USD 3,875.55 per ounce, marking its lowest closing level in over a year. The metal had previously traded around this mark on October 3, 2025, at USD 3,887.09 per ounce. Spot silver faced an even heavier selloff, sliding USD 3.04, or 6 per cent, to close at USD 49.12 per ounce, falling below the critical USD 50 threshold.
The steep pullback in international markets has been triggered by multiple macroeconomic pressures:
- Persistent Inflation and Energy Pressures: Elevated crude oil and energy costs have raised fresh inflation concerns, reducing the room for central banks to ease monetary policy aggressively.
- Hawkish Stance by the US Federal Reserve: Firm comments and expectations of prolonged high borrowing costs in the United States have dampened appetite for non-yielding bullion assets.
- Broader Market Unwinding: A simultaneous AI-driven selloff across global equity segments led market participants to liquidate liquid assets and cover margins, pulling bullion into the downdraft.
"Gold and silver prices were weighed down by rising energy prices, which fuelled inflation concerns, and hawkish commentary from the US Federal Reserve," noted Rahul Khetawat, Senior Vice President and Fund Manager at 360 ONE Asset. He added that these dynamics have tempered market expectations for near-term monetary easing, leading to a direct price correction across precious metals.
Domestic Futures and Investor Outlook
The weakness in spot trade mirrored movements on the Multi Commodity Exchange (MCX), where December futures contracts traded lower as institutional and retail participants reassessed their positions amid softer physical demand.
For domestic buyers and retail jewelers in India, the price slump provides notable relief after months of elevated bullion rates. With marriage season purchases and year-end demand underway, the sudden retreat toward 10-month lows is expected to stimulate footfall in physical retail centers, although market participants remain watchful of ongoing global volatility and upcoming monetary policy cues.
