In a significant shift in the Delhi Sarafa market, gold prices have experienced a notable decline, dropping by Rs 1,050 per 10 grams to settle at Rs 90,200 on April 9, 2025. This marks a decrease below the Rs 91,000 threshold, a level that had been maintained until recently. The All India Sarafa Association confirmed this downturn, attributing it to reduced demand from stockists and retailers. Previously, gold with 99.9% purity was priced at Rs 91,250 per 10 grams.
In contrast, silver has seen a rise, with prices increasing by Rs 500 per kilogram to reach Rs 93,200. On April 8, 2025, silver had closed at Rs 92,700 per kilogram, showcasing a notable shift in market dynamics.
On a global scale, spot gold prices have also risen, increasing by $61.98, or 2.08%, to $3,044.14 per ounce. This rise is attributed to ongoing concerns about a global trade war, which has led to increased demand for safe-haven assets like gold. Soumil Gandhi, a senior analyst at HDFC Securities, noted that fears of a global recession have spurred this demand, pushing gold to the $3,030 level.
Adding to the market's volatility, U.S. President Donald Trump has imposed additional tariffs on China, raising the duty to 104%. In retaliation, China has announced an increase in tariffs on American goods from 34% to 84%, effective April 10, 2025. This escalation in trade tensions has heightened concerns about a full-scale trade war between the two largest economies, further impacting market sentiments.
Gandhi emphasized that Trump's tariff policy has also exerted pressure on the U.S. dollar, which has seen a decline for the second consecutive day. This depreciation of the dollar has inadvertently benefited gold prices, making it a more attractive investment.
In the Asian market, spot silver has also shown a positive trend, trading nearly 2% higher at $30.41 per ounce. Chintan Mehta, CEO of Abans Financial Services, indicated that market participants are closely monitoring the upcoming Federal Open Market Committee (FOMC) meeting details and American inflation figures, which could provide insights into how the central bank may respond to rising trade risks.
As gold prices continue to fluctuate, experts suggest that this might be an opportune moment for investors looking to buy. Over the past four trading days, gold prices have fallen a total of Rs 4,100, which has sparked interest among potential buyers. The continuous decline in prices has been attributed to weak demand from retailers and stockists, as well as a general sluggishness in domestic investment.
In the broader context, geopolitical tensions, de-dollarization, and ongoing central bank purchases have been cited as factors supporting gold prices. With fears of inflation and recession looming, many investors are turning to gold as a secure investment.
Experts suggest that if current trends continue, gold prices could reach as high as $3,200 in international markets and Rs 94,000 to Rs 95,000 in India over the next three to six months. Ajay Kedia, president of Kedia Commodities, noted that historically, whenever the stock market experiences a decline of over 20% in a quarter, gold prices tend to rise significantly.
In the capital city of Bhopal, the prices for gold have also seen fluctuations. As of April 10, 2025, the price of 22-carat gold is Rs 8,380 per gram, while 24-carat gold is priced at Rs 8,799 per gram. In Indore, the rates are similar, with 22-carat gold at Rs 83,800 per 10 grams and 24-carat gold at Rs 87,990 per 10 grams. Silver prices in Bhopal remain stable, holding at Rs 1,02,000 per kilogram.
Understanding the purity of gold is crucial for buyers. The India Bullion and Jewellers Association (IBJA) provides rates that do not include GST, and it is important for consumers to check local prices, as they can vary by 1,000 to 2,000 rupees depending on the city.
In summary, as gold prices continue to fluctuate due to various market influences, including international trade tensions and domestic demand shifts, potential buyers are encouraged to consider this as a favorable time for investment. With the market dynamics constantly changing, staying informed and vigilant will be key for those looking to navigate the gold and silver markets effectively.
