On April 9, 2025, the Indian bullion market experienced significant fluctuations in gold and silver prices, reflecting the ongoing economic tensions and trade disputes between major global economies. In the Delhi Sarafa market, gold prices saw a notable decline, while silver prices experienced an increase, indicating a shift in investor behavior.
Gold prices fell sharply by 1,050 rupees per 10 grams, bringing the cost of 99.9% purity gold down to 90,200 rupees, compared to 91,250 rupees in the previous session. Similarly, 99.5% purity gold also declined to 89,750 rupees per 10 grams. This drop in prices has been attributed to weakened demand from stockists and retail buyers, as reported by the All India Sarafa Association. The association highlighted that the lack of strong demand at the domestic level has put pressure on gold prices.
In contrast to the decline in gold prices, silver saw a rise of 500 rupees, reaching 93,200 rupees per kilogram, up from 92,700 rupees the previous day. This uptick in silver prices is indicative of robust demand in the global market, which has been buoyed by various factors.
Internationally, spot gold prices surged by 2.08%, or 61.98 dollars, reaching 3,044.14 dollars per ounce. Analysts suggest that concerns over escalating global trade wars have led investors to seek refuge in gold as a safe haven asset. Soumil Gandhi, a senior analyst at HDFC Securities, explained that the ongoing trade disputes between the U.S. and China have pushed the global economy towards recession, thereby increasing gold's appeal.
Specifically, the U.S. imposed a 104% duty on Chinese imports, prompting China to retaliate with its own increased duties of up to 84%. These tariffs, effective from April 10, 2025, have heightened tensions in global markets, driving investors towards gold. Gandhi noted, "Concerns about the global recession have pushed gold to the 3,030 dollar level," reflecting the metal's status as a secure investment during times of economic uncertainty.
On the domestic front, the price fluctuations were not limited to gold alone. The Indian Bullion and Jewellers Association reported that 24-carat gold was priced at 88,570 rupees per 10 grams as of 9:50 AM on April 9, while 22-carat gold stood at 81,189 rupees per 10 grams. The price of silver (999 fine) was recorded at 89,110 rupees per kilogram.
In major cities across India, gold and silver prices varied significantly. For instance, in Mumbai, the bullion rate for gold was 88,460 rupees per 10 grams, while silver reached 89,010 rupees per kilogram. In Chennai, gold was priced at 87,720 rupees per 10 grams, and silver was 89,270 rupees per kilogram. Bengaluru reported gold at 88,530 rupees per 10 grams and silver at 89,080 rupees per kilogram. New Delhi saw gold priced at 88,310 rupees per 10 grams and silver at 88,860 rupees per kilogram. Kolkata's rates were similar, with gold at 88,340 rupees and silver at 88,900 rupees per kilogram.
As the stock market continues to show volatility, driven by Trump's tariff announcements and the resulting bearish market sentiment, the demand for gold and silver is expected to remain strong. Investors are increasingly wary of the stock market's performance, leading to a shift in investment strategies towards precious metals. The recent rise in gold prices on the Multi Commodity Exchange (MCX) also reflects this trend, with gold for delivery on June 5, 2025, trading at 89,428 rupees per 10 grams, marking a 2.03% increase.
Furthermore, silver for delivery on May 5, 2025, also saw a significant rise, trading at 90,180 rupees per kilogram, up by 1.62%. This surge in silver prices is attributed to both global demand and industrial usage, suggesting a broader economic recovery might be underway.
Overall, the fluctuations in gold and silver prices on April 9, 2025, reflect the complex interplay of global economic conditions, trade policies, and investor sentiment. As the situation evolves, market participants are advised to stay informed and consider expert analysis before making investment decisions.
