# Rupee Strength Puts Pressure on Bullion Market as Gold and Silver Extend Declines > Domestic gold prices fell by 400 rupees to 1,52,600 rupees per 10 grams, while silver slipped by 500 rupees to 2,26,000 rupees per kilogram amid a stronger Indian rupee. **Type:** article · **Category:** Business · **Published:** 2026-10-14 · **Source:** TrendKia **Canonical:** https://trendkia.com/en/business/rupaye-ki-majabuti-se-sarrapha-bajara-men-susti-sone-aura-chandi-ki-kimaton-men-darja-hui-giravata-47503 · **Language:** English **Tags:** Gold Price, Silver Price, Bullion Market, Rupee vs Dollar, Commodity Market, RBI Strengthening domestic currency continued to exert downward pressure on precious metal prices in the local bullion market. As the Indian rupee made notable gains against the US dollar, the landed cost of imported bullion eased, resulting in back-to-back price declines for both gold and silver on Tuesday. During the second trading session of the week, gold shed 400 rupees to settle at the 1.52 lakh rupees per 10 grams mark, while silver also witnessed persistent selling interest. ## Gold Prices in the Delhi Bullion Market According to information released by the All India Sarafa Association, the price of 99.9 percent purity gold in Delhi's spot market slipped by 400 rupees to settle at 1,52,600 rupees per 10 grams on Tuesday. This followed a steep downturn on Monday, when 99.9 percent purity gold dropped by 1400 rupees to end at 1,53,000 rupees per 10 grams. The two-day pullback has tempered local prices following a period of elevated levels. ## Silver Extends Losses After Friday's Sharp Rally Following gold's trajectory, silver prices also retreated for the second straight session. On Tuesday, silver declined by 500 rupees to end at 2,26,000 rupees per kilogram. During Monday's session, the white metal had tumbled by 2000 rupees to finish at 2,26,500 rupees per kilogram. These back-to-back corrections come after a strong rally seen on Friday of the previous week, when silver surged by 4500 rupees in a single day to reach 2,28,500 rupees per kilogram. ## Rupee Strengthens for Third Consecutive Session In the foreign exchange market, the Indian rupee gained ground for the third straight day, advancing by 40 paise to settle at 95.38 against the US dollar. The domestic unit received significant support from regulatory measures initiated by the Reserve Bank of India, which were intended to curb spot dollar demand and prevent excessive speculative positioning in the foreign exchange market. ## Lower Import Costs Ease Domestic Prices Explaining the market dynamics, Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, noted that the rupee gained more than 1.5 percent over the last two sessions. Because international bullion trades in US dollars, an appreciation in the domestic currency reduces the landed import cost of gold and silver. This drop in inbound acquisition costs directly transmitted into lower spot rates across physical domestic counters. ## What this means for you The decline in gold and silver prices provides relief for retail jewelry buyers and alters the near-term landscape for bullion investors. - **Retail Jewelry Buyers:** Gold prices have dropped by a cumulative 1800 rupees per 10 grams across two sessions. Families planning purchases for weddings or festive occasions will experience immediate cost savings per 10 grams. - **Silver Consumers:** Silver has retreated by 2500 rupees per kilogram over two consecutive trading days. Buyers of silver utensils, coins, or heavy articles will pay lower outright prices. - **Forex and Importers:** The rupee's recovery against the dollar reduces the landed price of foreign goods. Individuals arranging overseas travel or making international payments can access dollars at relatively improved exchange rates. - **Bullion Investors:** Short-term traders face price consolidation after the recent peaks. Investors in physical metals should closely track domestic currency movements and central bank policy interventions. ## Why this happened The primary driver behind the pullback in domestic gold and silver rates is the sustained appreciation of the Indian rupee against the US dollar. Because bullion is an imported commodity, currency strength lowers the domestic cost of shipments. - **Rupee Appreciation:** The rupee advanced for the third consecutive day, adding 40 paise to close at 95.38 per US dollar. Gaining over 1.5 percent in just two sessions, the stronger rupee made dollar-denominated imports cheaper. - **RBI Regulatory Measures:** The Reserve Bank of India implemented steps aimed at curbing spot dollar demand and reining in aggressive currency market positioning. These interventions effectively boosted the rupee's valuation. - **Dollar-Denominated Import Pricing:** Global bullion transactions are conducted in US dollars. When the domestic currency appreciates, importers pay fewer rupees for the same dollar value, transmitting directly into lower physical market quotes. ## Questions & Answers ### 1. What was the closing price of gold in Delhi on Tuesday? Gold of 99.9 percent purity dropped by 400 rupees to settle at 1,52,600 rupees per 10 grams in Delhi's bullion market. ### 2. How much did gold decline during Monday's session? On Monday, gold of 99.9 percent purity fell by 1400 rupees to close at 1,53,000 rupees per 10 grams. ### 3. What was the final price of silver on Tuesday? Silver prices decreased by 500 rupees to settle at 2,26,000 rupees per kilogram on Tuesday. ### 4. What level did silver reach on Friday of the previous week? Silver had rallied by 4500 rupees on Friday to reach 2,28,500 rupees per kilogram. ### 5. Where did the Indian rupee close against the US dollar? The Indian rupee gained 40 paise to close at 95.38 against the US dollar. ### 6. What caused domestic gold and silver prices to decline? A more than 1.5 percent appreciation in the rupee over two sessions reduced the landed import cost of dollar-denominated bullion. --- _TrendKia — Har trend, sabse pehle.. Machine-readable view; canonical HTML at the URL above._