Gold prices in Delhi dropped by Rs 3,200 to Rs 1,42,000 per 10 grams, hitting a 10-month low. The decline follows a global sell-off driven by the US Federal Reserve's stance on interest rates and forced selling in equity markets. Silver also fell by Rs 4,200, reflecting widespread pressure on precious metals.
Gold prices in Delhi fell sharply by Rs 3,200 on Saturday, settling at Rs 1,42,000 per 10 grams. This decline marks the second straight day of heavy selling, dragging the metal to its lowest level since December 2025. According to the All India Sarafa Association, the drop reflects a significant decline in confidence among investors who traditionally use gold as a safe haven during market volatility.
The pressure on bullion is largely linked to the US Federal Reserve's current approach to interest rates. The US central bank has indicated it will maintain a strict, high-interest-rate environment, cooling hopes for any immediate monetary relief. For investors, high interest rates make non-yielding assets like gold less attractive compared to bonds or cash, which pay interest. Rising energy costs globally have further added to inflation concerns, reinforcing the central bank's firm stance.
The decline has been worsened by an equity market rout, particularly in technology and artificial intelligence sectors. As stock portfolios face pressure, many investors have been forced to sell their holdings in gold and silver to raise cash, a process often called forced liquidation. This has accelerated the downward trend in global bullion prices, with international spot gold falling nearly 4% to $3,875.55 per ounce.
Silver has faced a more intense impact, dropping Rs 4,200 to close at Rs 1,86,000 per kilogram. Because silver is used both as an investment and in industrial applications, its price is highly sensitive to broad economic shifts. The current sell-off in industrial metals has amplified the impact on silver, leading to a faster contraction than that seen in gold.
Looking ahead, market volatility is expected to continue. Political uncertainty surrounding upcoming midterm elections in the United States is adding another layer of risk, with policy shifts potentially affecting commodity markets. Until there is more stability in interest rate projections and economic demand, both gold and silver are likely to face ongoing price pressure, with little sign of an immediate rebound.