Gold Slips Below Peak: Prices Ease Across Indian Cities Amid Global Cues

Image Source : Mint

Gold prices in India declined on June 20, 2025, marking the fourth consecutive day of losses as global cues, profit booking, and easing geopolitical tensions weighed on the yellow metal. The correction comes after gold touched record highs earlier this month, driven by safe-haven demand amid Middle East tensions and expectations of rate cuts.

Key Highlights from the June 20 Price Movement

- On the Multi Commodity Exchange (MCX), August gold futures opened at Rs 98,847 per 10 grams, down 0.50 percent intraday
- Spot prices for 24-carat gold fell by Rs 600 to Rs 1,00,480 per 10 grams, while 22-carat gold dropped by Rs 550 to Rs 92,100 per 10 grams
- Silver also followed suit, declining by Rs 2,000 per kilogram to Rs 1,12,100 in major cities
- The price drop reflects a combination of profit booking, a stronger US dollar, and easing risk premium from the Israel-Iran conflict

City-Wise Gold Rates on June 20

- Delhi: Rs 1,00,630 (24k), Rs 92,250 (22k)
- Mumbai: Rs 1,00,480 (24k), Rs 92,100 (22k)
- Chennai: Rs 1,00,480 (24k), Rs 92,100 (22k)
- Bengaluru: Rs 1,00,480 (24k), Rs 92,100 (22k)
- Hyderabad: Rs 1,00,480 (24k), Rs 92,100 (22k)
- Ahmedabad: Rs 1,00,530 (24k), Rs 92,150 (22k)
- Jaipur and Lucknow: Rs 1,00,630 (24k), Rs 92,250 (22k)

Market Drivers and Global Context

- The US Federal Reserve’s decision to hold interest rates steady, coupled with hawkish commentary, has tempered expectations of aggressive rate cuts
- Geopolitical tensions between Israel and Iran have shown signs of de-escalation, reducing the urgency for safe-haven assets
- US jobless claims came in lower than expected, strengthening the dollar and pressuring gold prices globally
- Analysts expect gold to remain range-bound in the near term, with support at Rs 98,500 and resistance near Rs 1,01,000 on the MCX

Investor Outlook

Despite the recent dip, gold remains up over 25 percent year-to-date and continues to be a preferred hedge against inflation and geopolitical uncertainty. However, experts caution that further corrections are possible if global risk sentiment stabilizes and central banks delay rate cuts.

Sources: Moneycontrol, News18, GoodReturns, Indian Express, LiveMint, Times Now, The Daily Jagran.