On April 4, 2025, the gold market in India experienced significant fluctuations, as prices for the yellow metal dropped sharply across major cities. This decline has raised eyebrows among investors and consumers alike, particularly in light of the recent economic developments linked to U.S. trade policies.
Gold prices fell dramatically, with 24-carat gold now priced at ₹91,640 for 10 grams, reflecting a drop of ₹1,740 from previous rates. Similarly, 22-carat gold is currently valued at ₹84,000 for the same quantity, down ₹1,600. This notable decrease in gold prices comes during a time of heightened uncertainty in global markets, primarily driven by U.S. President Donald Trump's recent tariff announcements.
In Delhi, the situation mirrors the national trend, with 24-carat gold priced at ₹91,790 and 22-carat at ₹84,150. Mumbai's gold prices are slightly lower, with 24-carat gold at ₹91,640 and 22-carat gold at ₹84,000. Other cities, including Chennai, Kolkata, and Hyderabad, reflect similar price points, underscoring a nationwide trend.
The drop in gold prices can be attributed to multiple factors, including market volatility and a shift in investor sentiment. The imposition of tariffs by the U.S. government has raised concerns about a potential trade war, leading to a sell-off in gold as investors react to the changing economic landscape.
In addition to gold, silver prices have also seen a decline, dropping by ₹4,000 per kilogram to ₹99,000. In Bhubaneswar, silver is priced at ₹1,08,000 per kilogram, further illustrating the impact of current market conditions.
Over the past few weeks, gold prices had been on an upward trajectory, driven by increasing demand amid economic uncertainty. According to the Oxford Gold Group, Indian households hold nearly 11% of the world’s total gold reserves, highlighting the cultural significance and investment potential of gold in India.
Despite the recent price drop, financial experts believe that gold will continue to be a stable investment option. As the global financial climate remains tense, the demand for gold as a safe-haven asset is expected to rise, especially with the wedding and festival seasons approaching.
As of now, the average gold price across major cities reflects a consistent pattern with minor fluctuations. In Delhi, for instance, the 22-carat gold price is ₹8,515 per gram, while 24-carat gold is priced at ₹9,197 per gram. In Chennai, these rates stand at ₹8,400 and ₹9,164, respectively. The same trend is seen in cities like Bengaluru, Mumbai, and Kolkata.
The volatility in gold prices is influenced by various factors, including changes in global demand, interest rates, and currency fluctuations. The recent announcements regarding tariffs have prompted many investors to reassess their portfolios, leading to a decrease in gold prices as they cash in on their long positions.
In light of these developments, many consumers are seizing the opportunity to purchase gold at lower prices, especially ahead of the wedding season. "It's a big setback for India as the U.S. has announced retaliatory tariffs. While in the broader sense, it will be 26%. The Gems and Jewelry sector will be the most affected," stated Colin Shah, Managing Director of Kama Jewelry.
As the situation unfolds, the gold market remains under scrutiny. Investors and consumers alike are advised to stay informed about market trends and global economic indicators that could influence gold prices in the coming weeks.
In summary, the gold market in India is witnessing a significant downturn, with prices dropping sharply amid concerns over global trade tensions and U.S. tariffs. While this presents a buying opportunity for some, the overall sentiment remains cautious as investors navigate the uncertain economic landscape.
