Gold Prices Slide, May Drop Below ₹1 Lakh
HYDERABAD: Gold and silver prices are witnessing a steady decline, with market experts indicating that the downward trend may continue in the near term.
Prices, which had risen recently, have fallen by nearly 11 per cent over the past week. Analysts cite multiple factors behind the decline, despite ongoing tensions in West Asia.
One view in the market is that investors are withdrawing their investments due to uncertainty following the Iran–Israel conflict. This has added pressure on bullion prices.
Investors pull back amid geopolitical and currency pressures
Although the Iran–Israel war has continued for nearly four weeks, gold and silver prices have been falling consistently for the past 10 days. Experts attribute this to global price volatility, inflation trends, the weakening rupee against a strengthening US dollar, and rising crude oil prices.
“The strengthening of the dollar and global uncertainties are key factors driving the decline,” market analysts said.
They added that if the trend continues, gold prices could fall below ₹1,00,000 per 10 grams in the coming months.
Demand dips during inauspicious period, traders say
Traders said demand has remained weak due to the ongoing inauspicious period, during which purchases are typically low.
However, with auspicious dates expected to resume from June, buyers are likely to return if prices remain low. “Many are already planning purchases in anticipation of further declines,” traders said.
As of 6 am on Monday, prices in the Hyderabad bullion market were:
- 22-carat gold (10 grams): ₹1,33,790
- 24-carat gold (10 grams): ₹1,45,960
- Silver (1 kg): ₹2,49,900
Prices may fluctuate further during the day.
