Gold, Silver Prices Plummet from Record Highs Amid Global Volatility

Gold and silver prices plummeted on Friday, July 24, offering relief to jewellery buyers who had been dealing with elevated costs for months. The India Bullion and Jewellers Association (IBJA) reported that both precious metals saw significant declines due to global market sentiment, profit booking, and easing demand.

The price of 24-carat gold dropped by ₹1,848 per 10 grams, falling to ₹1.42 lakh per 10 grams. Silver prices declined by ₹2,924 per kilogram, settling at ₹2.19 lakh per kg. This correction comes after both metals reached record highs earlier this year.

Gold had surged from around ₹1.33 lakh per 10 grams at the end of December to an all-time high of approximately ₹1.76 lakh on January 29. Since then, it has corrected by nearly ₹34,000 per 10 grams. Silver climbed from around ₹2.30 lakh per kilogram at the end of last year to a historic peak of ₹3.86 lakh per kilogram on January 29, only to fall by nearly ₹1.67 lakh per kilogram.

Market experts attribute the decline to various factors, including profit booking after record highs, fluctuations in international bullion markets, changes in global interest rate expectations, a relatively stronger US dollar, and reduced safe-haven demand following temporary easing in market volatility.