Gold and silver prices in India declined for the second consecutive session on Wednesday, mirroring global market caution triggered by uncertainty over US tariff decisions. Despite the drop in spot prices, futures remained resilient, signalling mixed investor sentiment.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by ₹416 to ₹97,500 per 10 grams, down from ₹97,916 on Tuesday. 22-carat gold also dropped ₹381, settling at ₹89,310 per 10 grams. Similarly, 18-carat gold dipped to ₹73,125 per 10 grams, from ₹73,437 in the previous session.
Silver followed suit, with spot prices falling by ₹797 to ₹1,11,200 per kilogram, compared to ₹1,11,997 a day earlier.
Futures Hold Firm Amid Global Trends
Despite the weakness in physical markets, India’s futures market remained buoyant. On the Multi Commodity Exchange (MCX), gold futures for August 5, 2025, delivery rose 0.21% to ₹97,415. Silver futures for September 5, 2025, delivery were up 0.29%, trading at ₹1,11,805.
Globally, gold was up 0.27% at $3,345.60 per ounce on the Comex, while silver gained 0.34% to $38.24 per ounce. However, analysts say the market lacks a near-term catalyst.
“Gold is caught in a consolidation, with prices rangebound between $3,300 and $3,500 per ounce. The market is missing an imminent trigger to restart the recent rally,” said Carsten Menke, Head of Economics at Julius Baer.
India’s Jewellery Sector Watches Closely
India, one of the world’s largest consumers of gold and silver, remains sensitive to global cues. The ongoing correction has led to subdued footfall in jewellery stores across cities like Mumbai, Delhi, and Chennai, according to market insiders.
“Consumers are waiting for further clarity on price direction. Festive season demand could pick up if prices stabilise or soften further,” said a bullion trader from Delhi’s Chandni Chowk market.
Analyst Outlook: Rangebound For Now
Julius Baer, in its latest note, maintained a neutral stance on silver despite its recent breakout, attributing the rally to renewed investor interest rather than structural factors.
“Silver’s catch-up potential to gold seems exhausted. We lift our price targets but downgrade our view to Neutral,” the report said.
As Indian markets prepare for the festive season in the months ahead, traders and investors will closely track US macroeconomic data—particularly the Producer Price Index (PPI) and jobless claims—expected later this week. These indicators could shape the next directional move for gold and silver prices in India.
–Input IANS
