Chennai, February 28, 2025 - Gold prices have taken a significant nosedive today, offering some relief to buyers amid fluctuated numbers over the past few weeks. The yellow metal is being traded at Rs 63,680 per sovereign, reflecting a drop of Rs 400, as reported by local jewelers. Concurrently, the price per gram has also decreased by Rs 50, landing at Rs 7,960.
This price change is notable as it continues the trend of volatile pricing observed this week, where gold prices reached record highs earlier. Just last week, on February 5, gold crossed the Rs 63K mark, with sovereign rates recorded at Rs 63,240. This climb was part of a trend inundated by small dips and rebounds. On February 12, for example, the price fell by Rs 960 per sovereign, marking the first significant decline.
Gold's rapid changes have been influenced by broader economic factors. Global events, such as recent announcements by U.S. President Donald Trump about impending tariffs on Mexican and Canadian goods set to take effect next week, have left investors rattled. This has led to increasing caution when investing in commodities like gold. Indeed, prices dipped throughout the day, with the international spot gold edging down 0.1%, settling at $2,874.69 and U.S. futures down 0.3% to $2,886.80.
Further detailing the fluctuations, silver prices have also seen declines, with rates inching down to Rs 105 for one gram. Over the past five days, reports indicate the last recorded silver price stood at Rs 105,000 per kilogram, presenting significant changes and raising questions for buyers seeking precious metals.
Recent patterns suggest gold prices might be shifting down again after touching record highs following multiple consecutive wins. This marks the week as the third consecutive decline for gold prices, indicating possible challenges for the overall market. Markets are continuously monitoring economic updates and the Federal Reserve's stance on policy changes, which directly influence gold investment attractiveness.
Gold price changes for the past five days have indicated shifts as follows:
While fluctuations are common, this week has certainly presented buyers with mixed signals as gold's ascent has seemed relentless. Reports suggest heightened demand amid global uncertainties typically drives gold higher. Yet, with such notable declines, many are left pondering whether this is the beginning of longer-term changes or merely temporary corrections.
For those interested in purity, ensuring quality gold can be checked using several methods: hallmarking for authenticity, BIS standard markings, or acid tests under expert guidance. Given the fluctuations and varying prices, buyers and investors are encouraged to conduct thorough checks and seek advice before making big commitments.
Reflecting on the current circumstances, the overall sentiment around gold continues to revolve around market influences from political announcements, economic shifts, and international demand. While today presents lower gold prices, the future remains uncertain as global economic issues evolve.