Precious Metals Plunge! Gold Drops ₹490, Silver Sinks ₹1,000 in Dramatic Market Move

Indian gold and silver prices saw a steep fall on Tuesday, 20th May 2025, easing the relief for buyers but showing that market sentiment is turning as global risk is decreasing.

 

Key Highlights:

 

Gold Dips: The rate of 24-carat gold decreased by ₹490 to ₹96,540 per 10 grams in the capital city, from the last close of ₹97,030. Likewise, 22-carat gold also decreased by ₹450, available at ₹87,100 per 10 grams in important cities such as Hyderabad and Mumbai. This is the second day in a row of falls, as gold currently trades around 6% lower compared to all-time highs.

 

Silver Takes a Cue: Silver prices dropped by ₹1,000 to ₹97,500 per kilogram, which is part of the larger trend of decreasing precious metal prices in India. Silver was quoted at ₹97,000 per kg in some locations after the price drop.

 

Global Developments in Focus: The decline is due to soothing geopolitical tensions—between Russia and Ukraine in particular—and hope in US-China trade ties. These market developments have dampened the demand for safe-haven assets such as gold and silver. Uncertainty regarding the path of interest rates by the US Federal Reserve and a modestly firmer US dollar have also weighed on the market.

 

Market Outlook: Spot gold experienced a modest rise in foreign markets but Indian futures contracts for both gold and silver declined, as analysts predict more volatility from pending US Federal Reserve cues and fiscal policy deliberations.

 

With the prices having declined from their highs, the dip now presents a window of opportunity for consumers, particularly during the current wedding season.

 

Sources: Deccan Herald, GoodReturns, Sakshi Post, The Week