The bullion market in India witnessed contrasting movements on Tuesday, with gold prices dropping significantly while silver continued its upward rally. In the national capital Delhi, gold fell by ₹1,670 to ₹1,31,530 per 10 grams, whereas silver surged by ₹4,360 to ₹1,81,360 per kilogram, supported by robust industrial and investment demand. Weak global cues, concerns over upcoming US economic data, profit-booking, and the falling Indian rupee weighed heavily on the precious metals market this week.

Gold Price Plunges on Weak Global Signals

According to traders, gold prices in Delhi’s bullion market slipped sharply after touching multi-day highs in the previous sessions. The price of 99.9% purity gold dropped to ₹1,31,530 per 10 grams, compared to ₹1,33,200 per 10 grams in the last session.

Analysts say that global economic uncertainties ahead of key US economic indicators have triggered selling pressure, prompting traders to book profits after the recent strong rally.

Expert View

Soumil Gandhi, Senior Commodity Analyst at HDFC Securities, stated:
“Gold touched its highest levels last week, leading to a wave of profit-booking. Market participants are cautious ahead of crucial US economic numbers due later this week, which has weakened gold internationally.”

Silver Rally Continues for the Sixth Straight Day

Unlike gold, silver remained on a strong upward trend. On Tuesday, silver prices climbed ₹4,360 per kg, settling at ₹1,81,360 per kilogram (including all taxes). On Monday, the metal closed at ₹1,77,000 per kg.

The sustained rise highlights strengthening demand from industrial sectors and investors looking for alternatives, particularly in the clean-energy and electronics space where silver consumption is high.

Rupee Weakness Adds Pressure

Commodity prices in India were also impacted by the weakening rupee. The domestic currency fell to a record low of ₹89.95 per US dollar, leading to higher import costs.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, explained:
“The sharp depreciation in the rupee is pushing up the landed cost of imported metals. However, weakness in international gold prices has partly offset the upward impact locally.”

Global Market Trends

International bullion markets also saw a strong downward movement on Tuesday:

The strengthening US dollar and volatility in US bond yields continue to pressure commodity markets globally. Investors are waiting for cues from the US Federal Reserve outlook, inflation updates, and geopolitical developments.

What Should Investors Do Now?

While gold prices have corrected, many market experts believe it could be an opportunity for long-term investors to accumulate at lower levels. On the other hand, silver’s strong momentum suggests further upside potential in the short term due to rising industrial demand.

However, analysts recommend monitoring:

• US inflation and employment reports

• Dollar index movement

• Global geopolitical risks

• Bond market trends

Key Highlights of Today’s Bullion Market

• Gold down by ₹1,670 to ₹1,31,530 per 10g

• Previous session gold price: ₹1,33,200 per 10g

• Silver up by ₹4,360 to ₹1,81,360 per kg

• Rupee at all-time low: ₹89.95 per US dollar

• International markets see heavy decline in both gold & silver

Bottom Line

The contrasting performance in gold and silver reflects ongoing market uncertainty and investor repositioning ahead of critical global data. Investors should stay alert to market signals and consider staggered buying strategies if investing for long-term wealth planning.