Gold prices slide sharply in Hyderabad; silver sees steep fall

HYDERABAD: After months of relentless gains, gold prices fell sharply in the domestic market on Wednesday, offering relief to buyers ahead of the wedding season. Silver prices also recorded a steep decline.

The drop comes amid growing debate over whether the recent surge in gold prices reflects genuine demand or speculative excess. In 2025 alone, gold prices have risen nearly 60%, an increase that market experts have described as abnormal and bubble-like, warning retail investors to exercise caution.

Concerns over speculative surge

Analysts point to the role of global financial institutions and research reports in fuelling price momentum. At market peaks, large foreign research firms such as Goldman Sachs and JPMorgan often issue bullish outlooks on gold, encouraging retail participation.

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Retail investors, influenced by these projections, tend to buy at elevated levels. At the same time, institutional investors gradually book profits. When prices correct, institutions remain insulated while small investors are left exposed to losses, market watchers said.

There have also been long-standing allegations that a handful of major banks based in London and New York influence global gold prices, rather than prices being driven purely by supply and demand.

Wedding season brings relief

With demand typically rising during the wedding season, consumers had been hoping for a correction. That expectation materialised on Wednesday, with gold and silver prices registering one of their sharpest single-day falls in recent weeks.

The price of 10 grams of gold dropped by ₹9,650, while silver prices fell by up to ₹20,000 per kg.