On February 28, 2025, gold and silver prices saw substantial declines across various markets, driven by weak investor demand and increasing pressure from the strengthening U.S. dollar. The national capital's gold prices decreased by ₹500, settling at ₹87,700 per 10 grams, marking the lowest point observed over the past two weeks. This decline was echoed across other cities, including Mumbai and Chennai, where prices also reflected the downward trend.
The India Bullion and Jewellers Association (IBJA) reported the current market scenario, stating, "Today, the price of 10 grams of 24-carat gold fell by ₹479, dropping to ₹85,114, down from ₹85,593 the previous day." This drop aligns with the recent performance of gold, which reached ₹86,733 on February 19, 2025, showcasing the volatility impacting the market.
According to the ACJU (All India Jewelers Association), investors opted to sell off their gold holdings as the dollar strengthened due to new tariffs announced by the U.S. on imports from Mexico and Canada. These factors significantly influenced market behavior, amid fears sparked by additional tariffs on China, which eroded previous forecasts of stability.
Rahul Kalantari of Mehta Equities noted, "The rise of the dollar index has exerted downward pressure on both gold and silver prices, affected by the recent announcements surrounding U.S. tariffs." The impact of U.S. domestic policies has global reverberations, affecting commodity markets like gold and silver, which traditionally are seen as safe havens during times of fiscal uncertainty.
Recent figures indicate silver prices also faced steep declines, with the price per kilogram plunging to ₹96,400—down ₹2,100 compared to the previous day. Analysts attribute this drop to similar market dynamics affecting gold.
The current market values of gold across major cities reflect this shift:
- Delhi: 22K gold at ₹80,240 and 24K gold at ₹87,520
- Mumbai: 22K gold at ₹80,090 and 24K gold at ₹87,370
- Chennai: 22K gold at ₹80,090 and 24K gold at ₹87,370
- Kolkata: 22K gold at ₹80,090 and 24K gold at ₹87,370
This significant shift prompts conversations around investment strategies as buyers brace for potentially lower prices. Cautioning against hasty investments, experts advise buyers to remain informed about market conditions, especially with weddings looming, as demand might shift again prompting prices to rise.
Chintan Mehta, the CEO of Abans Holdings, specified, "The drop we are observing is indicative of stronger yields on U.S. bonds, which may delay potential interest rate cuts from the Federal Reserve due to persistent inflationary pressures. This scenario complicates the outlook for gold prices moving forward, especially with any speculative buying or selling driven by investors trying to capitalize on fluctuations."
Meanwhile, the price of April delivery gold contracts on the Multi Commodity Exchange (MCX) was noted at ₹84,712 per 10 grams, reflecting the gloomy overall sentiment within the commodity markets.
It’s important for potential buyers to keep abreast of these developments, as current valuations might offer lucrative opportunities. Although prices have receded sharply recently, historical trends suggest spikes could occur, particularly during peak wedding seasons.
Despite today's declines, the price of gold has seen considerable adjustments within the year, climbing from ₹76,162 to its current ₹85,114 per 10 grams since January, reflecting the often volatile nature of commodity trading influenced by global events.
To conclude, today’s dip presents both challenges and opportunities for investors. Continued monitoring of dollar strength and global market conditions will be key as we navigate forthcoming trading sessions. Experts remind buyers to evaluate market trends carefully and buy certified gold with appropriate hallmarks to guarantee quality and compliance with standards, which is important for both buyers and sellers alike.