Gold prices in Delhi plummeted ₹3,200 to a 10-month low of ₹1.42 lakh per 10 grams on Saturday, marking the second consecutive session of declines. The drop followed a sharp global selloff in precious metals, with 99.9% pure gold falling to ₹1,42,000 per 10 grams from Friday's ₹1,45,200, according to the All India Sarafa Association. The last time gold was quoted at these levels was December 26, 2025.
Silver prices also extended their losses, dropping ₹4,200 to ₹1,86,000 per kilogram from the previous close of ₹1,90,200. The white metal had last traded around these levels on December 8, 2025. Analysts attributed the declines to rising energy prices, which stoked inflation concerns, and hawkish remarks from the US Federal Reserve. These factors dampened expectations of monetary easing, putting pressure on precious metals.
Overseas, spot gold tumbled $145.84, or nearly 4%, to close at $3,875.55 per ounce on Friday, hitting its lowest level in over a year. Spot silver also fell $3.04, or 6%, to settle at $49.12 per ounce. Analysts noted that higher oil prices and firm inflation had revived expectations of a December Fed rate hike, strengthening the case for higher-for-longer interest rates. Additionally, an AI-led equity rout added to forced liquidation and cash-raising pressure, with silver's industrial exposure amplifying its decline.
Reports from China suggested investors may be selling gold to raise cash, though this was not confirmed. Analysts also pointed to speculative short positions building ahead of the US mid-term elections, with President Donald Trump's majority likely to influence the future trajectory of bullion prices.