The mood among precious-metal investors shifted noticeably this week. After a long run of record highs, both gold and silver saw sharp selling, leaving the two metals markedly cheaper within just seven days. For buyers who had been holding back because prices were too steep, this slide is being read as a welcome opening.
What pulled prices down
Market watchers point to a cluster of worries acting together. On one side is the fear that inflation could climb again; on the other, crude oil prices have stayed elevated because of the US–Iran war. Add to that the prospect of higher interest rates, and the picture was set. Taken together, these concerns pushed investors to book profits at high levels, and that wave of selling is what dragged the metals lower.
Where gold prices landed
According to data from the India Bullion Jewellers Association (IBJA), the widely traded 24-carat gold fell 6,438 rupees this week to 1,47,800 rupees per 10 grams, down from 1,54,238 rupees per 10 grams earlier.
The jewellery-grade categories eased as well. Gold of 22 carats slipped to 1,35,385 rupees per 10 grams, against 1,41,282 rupees per 10 grams before, while 18-carat gold dropped to 1,10,850 rupees per 10 grams from its earlier 1,15,679 rupees per 10 grams.
The week's swing
Gold swung widely through the week. Its lowest point came in the morning session of 11 June at 1,44,782 rupees per 10 grams, whereas the highest level was touched in the morning session of 9 June at 1,52,519 rupees per 10 grams — a sizeable gap opening up in just a few days.
Silver followed suit
Silver's shine dimmed alongside gold. The metal lost 14,326 rupees to settle at 2,42,582 rupees per kilo, down from 2,56,908 rupees per kilo earlier. During the week, silver hit its lowest in the evening session of 11 June at 2,32,591 rupees per kilo, and its highest in the evening session of 9 June at 2,45,938 rupees per kilo.
The international market slipped too
The decline was not confined to the domestic market. Amid global instability, international gold came down to around 4,248 dollars per ounce and silver to roughly 68 dollars per ounce.
The longer-term picture stays strong
Despite the recent dip, the bigger trend still favours holders. Over the past year, both metals have delivered handsome returns: in dollar terms, gold has gained more than 24 percent and silver more than 87 percent — a sign that the current slide looks more like a pause within a long rally than a reversal.
