Gold Prices See First Decline in Nine Weeks, Dropping Over 1% This Week
Gold Prices See First Decline in Nine Weeks, Dropping Over 1% This Week
Gold prices experienced a notable drop of over 1% this week, marking the first decline in nine consecutive weeks. As of Saturday, the price of 24K gold in major Indian markets stood at ₹86,620 per 10 grams, reflecting a decrease of ₹1,150 from the previous week. Meanwhile, 22K gold was priced at ₹79,400 per 10 grams, down by ₹1,050 over the same period.
In the Delhi market, 24K gold saw a decline from ₹87,920 per 10 grams last week to ₹86,770 per 10 grams this week. Similarly, the price of 22K gold dropped to ₹79,550 per 10 grams, compared to ₹80,600 previously. This marks a shift after gold had seen a strong upward trend for the past eight weeks, which was driven by a combination of factors including demand for safe-haven assets, a weaker dollar, and steady local demand.
Between December 7, 2024, and February 22, 2025, gold prices surged by approximately 12%, an increase of over ₹10,000 per 10 grams. This rally culminated in a new all-time high for gold earlier this week. However, after reaching these record prices, gold prices began to retreat over the last few days.
The week began on a strong note with gold gaining ₹100 on Monday. By Tuesday, the price had risen further by ₹220, reaching an all-time high of ₹88,090 per 10 grams for 24K gold. This was followed by another record-setting price for 22K gold, which reached ₹80,750 per 10 grams in cities like Mumbai. Yet, this surge prompted some profit-taking, and by Wednesday, the price of 24K gold had fallen by ₹270 to ₹87,820 per 10 grams.
Gold continued its downward trend in the following days, dropping ₹440 on Thursday and ₹540 on Friday, eventually settling at ₹86,840 per 10 grams. This level had not been observed since mid-February. On the global front, gold also experienced a decline of more than 2% this week, trading below $2,900 per ounce on Friday. After hitting a record high of $2,954 per ounce on Tuesday, gold lost momentum, falling below the $2,900 mark as the week progressed. By Friday, it stood at $2,863.46 per ounce in the spot market.
In addition to the profit-taking at high levels, there were several global factors influencing gold prices. One of the key factors was the rebound of the US dollar, which rose to the 107 range following economic data that pointed to a resilient US economy. This development fueled concerns about potential inflation spikes due to the economic policies of former President Donald Trump. These factors suggested that the US Federal Reserve may maintain current interest rates to keep inflation in check, which could diminish the appeal of non-yielding assets like gold.
On Friday, the US dollar traded near a multi-week high of 107.39, largely driven by tariff threats against European trade partners and China. As the dollar strengthened, the demand for gold decreased, despite the steady yield on US bonds. Investors, anticipating the release of the US Personal Consumption Expenditures (PCE) index that night, opted to book profits, which further pressured gold prices.
Another significant factor that contributed to the decline in gold prices was weak domestic demand, particularly in India. The ongoing wedding season, which typically boosts gold consumption, was expected to face a slowdown due to a limited number of auspicious days for marriages in March. According to the Hindu calendar, there are only five auspicious days for marriage in March 2025, which could further weaken demand for gold in the country.
Meanwhile, silver prices also faced a sharp drop of more than 3%, losing ₹3,500 per kilogram this week. On Saturday, silver was priced at ₹97,000 per kilogram, compared to ₹100,500 per kilogram last week. The silver market started the week positively, with a ₹500 increase on Monday, but concerns about weak demand and a push for fossil fuel investments in the US led to a sharp fall in silver prices. On Friday, silver dropped an additional ₹1,000, settling at ₹97,000 per kilogram.
Gold Price
Both gold and silver experienced losses this week due to a combination of profit-taking, the strengthening US dollar, and weak demand in key markets like India. While gold had a strong bull run over the past two months, the recent market corrections and external economic factors are influencing prices, marking the first significant downturn in gold’s price in several weeks.
