On Monday, April 7, gold prices in the Indian bullion market experienced a sharp decline, reflecting increasing volatility in global markets and the impact of escalating trade tensions between major economies. In the Delhi Sarafa market, the price of gold fell by ₹1,550, settling at ₹91,450 per 10 grams. This marks a significant shift from the previous Friday, when gold was priced at ₹93,000 per 10 grams, leaving investors wary amid the market’s uncertainty.
The All India Sarafa Association attributed the drop in gold prices to heavy selling by jewelers and stockists, compounded by weaker global market trends. Gold with 99.5% purity also saw a decline of ₹1,550, bringing its price to ₹91,000 per 10 grams. This decrease is noteworthy, especially given the upward trajectory of gold prices since January 2025.
Silver prices mirrored the downward trend, falling by ₹3,000 to ₹92,500 per kilogram. This drop extends a pattern of price reductions that have seen silver lose ₹10,500 over the past five trading sessions. Silver was priced at ₹95,500 per kilogram last Friday, underscoring the extent of recent market fluctuations.
Market Impact and Global Trends
Saumil Gandhi, a senior analyst at HDFC Securities, explained that the dip in gold prices was largely due to continued panic selling in equity markets and other asset classes, which has increased pressure on precious metals. “Monday’s fall in gold prices was the result of ongoing selling pressure in the equity markets, creating an atmosphere of uncertainty,” Gandhi commented.
On the global stage, spot gold prices also suffered, dropping by $10.16, or 0.33%, to $3,027.20 per ounce. In contrast, spot silver in Asian markets saw a slight increase of 1.65%, reaching $30.04 per ounce, reflecting mixed market sentiment across regions.
The decline in gold and silver prices comes amid growing trade tensions, particularly between the United States and China. Following the imposition of tariffs by U.S. President Donald Trump, China responded with retaliatory tariffs, further complicating the global economic outlook and adding to investor apprehension.
Domestic Market Reactions
Despite the global downturn, domestic markets have shown some resilience. On the Multi Commodity Exchange (MCX), gold prices briefly rose by ₹301, or 0.34%, to ₹88,376 per 10 grams, while silver saw an increase of ₹1,487, or 1.71%, reaching ₹88,698 per kilogram. This contrast between global and domestic price movements highlights the complexity of the current economic landscape.
Looking Ahead
Market analysts are keeping a close watch on the upcoming Consumer Price Index (CPI) data from the United States, which could influence expectations around interest rate changes and, by extension, gold prices. Jatin Trivedi, Vice President of Research at LKP Securities, stressed the importance of this data, stating, “The upcoming CPI data will play a crucial role in shaping market expectations regarding interest rates, which could directly impact gold prices.”
Additionally, the Reserve Bank of India’s upcoming monetary policy review meeting will be closely scrutinized, as decisions made there could further affect the prices of gold and silver.
Investor Sentiment and Caution
For many buyers, the current dip in prices presents an opportunity to purchase gold and silver at a lower cost, particularly with the wedding season approaching. However, experts urge caution, warning that the market remains unstable and volatile.
The fluctuations in gold and silver prices are indicative of broader economic uncertainties. Investors are advised to take a strategic approach, recognizing that while gold remains a traditional safe haven, its performance in current conditions requires a more nuanced understanding of global and domestic economic pressures. As the market continues to react to these ongoing challenges, it is crucial for investors to remain vigilant and well-informed.
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