Gold prices have witnessed a sharp decline across major Indian cities over the past week. In Delhi, 24-carat gold has dropped from ₹1,63,242 per 10 grams on August 24 to ₹1,50,159 today, marking a fall of over ₹13,000.
A similar trend has been seen in 22-carat gold, with prices falling by more than ₹10,000.
Prices fall in Chennai, Mumbai, Bengaluru too
Among the major cities, Chennai currently records the highest 24-carat gold price at ₹1,51,510.43 per 10 grams, while Delhi and Bengaluru are at ₹1,50,159. Mumbai’s 24-carat gold price stands at ₹1,50,242 per 10 grams.
For 22-carat gold, Mumbai is currently at ₹1,37,621.76 per 10 grams, followed by Chennai at ₹1,37,782.55, while Delhi and Bengaluru are at ₹1,37,545.64 per 10 grams.
Why have gold prices fallen?
Gold prices fell to their lowest level in more than three weeks on Wednesday, as a stronger US dollar weighed on the precious metal. Rising tensions between Tehran and Washington also pushed oil prices higher, raising fresh concerns about inflation ahead of closely watched US jobs data, according to a Reuters report.
The latest exchange of fire between the US and Iran has added to uncertainty in global markets. With oil prices climbing, investors are worried that a prolonged energy shock could keep inflation elevated and make it harder for the US Federal Reserve to cut interest rates.
That, in turn, has given the dollar a boost. The US dollar rose to a two-week high, making gold, which is priced in dollars, more expensive for buyers using other currencies.
Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com, told Reuters the combination of geopolitical uncertainty, higher oil prices and inflation risks was creating pressure on gold.
He described the precious metal as being caught between expectations of a more hawkish Federal Reserve and longer-term concerns around currency debasement, a tug-of-war that has kept gold prices volatile.
West Asia tensions add to pressure
The US military said it carried out fresh strikes on Iran on Tuesday, warning Tehran of “devastating” consequences if it retaliates. Iran later targeted US troops in Jordan and the UAE, while projectiles also hit two oil tankers in attacks that no group has claimed.
The latest escalation between the US and Iran has put markets on edge. Washington has threatened further strikes, while oil prices have climbed to around one-month highs.
For gold, the stronger dollar has become an additional headwind. As the greenback gains strength, dollar-priced gold becomes costlier for overseas buyers, reducing demand and putting further pressure on prices.
