Sharp Decline in Gold Prices—Is It the Right Time to Buy or Wait?

Gold prices in India have continued their downward trajectory, marking the sixth consecutive day of decline. On April 28, 2025, gold prices saw a significant drop, with 24-carat gold falling below ₹1 lakh per 10 grams. Similarly, 22-carat gold prices also plummeted to under ₹90,000 per 10 grams. The fall in prices has raised questions about the factors influencing the gold market and whether the trend will continue.

Factors Affecting Gold Prices in India

Several factors are influencing the drop in gold prices across India. These include:

• International Gold Prices: The global gold market plays a crucial role in determining prices in India. Fluctuations in international gold prices directly affect the domestic market.
• Rupee-Dollar Exchange Rate: A stronger Indian rupee against the US dollar can lead to a decrease in the import cost of gold, thereby reducing the price in the local market.
• Local Demand: Gold prices can also fluctuate depending on regional demand, including during peak buying seasons such as weddings and festivals.

Gold Prices in Major Indian Cities

Here’s a look at the current gold prices in major cities across India as of April 28, 2025:

Telugu States (Hyderabad, Vijayawada, and Chennai):

• 24-carat gold (10 grams): ₹97,530
• 22-carat gold (10 grams): ₹89,400

In these regions, there has been a noticeable drop in gold prices compared to the previous day, with a decline of ₹680 for 24-carat gold and ₹620 for 22-carat gold.

Also Read: Indian Stock Market Opens Higher, Sensex Up 400 Points in Early Trade

Delhi:

• 24-carat gold (10 grams): ₹97,680
• 22-carat gold (10 grams): ₹89,550

Gold prices in Delhi remain slightly higher due to transportation costs and local taxes. The prices have seen a reduction of ₹630 and ₹620, respectively, in comparison to the previous day.

Mumbai:

• 24-carat gold (10 grams): ₹97,530
• 22-carat gold (10 grams): ₹89,400

Gold prices in Mumbai, influenced by local demand and jewellery design variations, have decreased by ₹680 and ₹620 respectively when compared to the previous day.

Bengaluru:

• 24-carat gold (10 grams): ₹97,530
• 22-carat gold (10 grams): ₹89,400

Similar to other cities, Bengaluru saw a decline of ₹680 for 24-carat gold and ₹620 for 22-carat gold. While prices remain stable, factors such as local economic conditions and upcoming festival demand may cause some fluctuations.

Why Gold Prices are Falling

The decline in gold prices can be attributed to a variety of reasons:

• Strong Rupee: The strengthening of the Indian rupee against the US dollar has reduced gold’s import cost.
• Lower International Prices: A reduction in international gold prices has contributed to the drop in domestic prices.
• Local Market Dynamics: Changes in local demand, taxes, and import duties also affect gold prices across different states and cities.

Silver Prices Also Decline Sharply

Along with gold, silver prices have also seen a sharp fall today. In major cities like Hyderabad, Vijayawada, Chennai, Bengaluru, and Mumbai, silver has decreased by ₹900 to ₹1,11,000 per kilogram. Delhi saw the highest drop of ₹1,400, with the price of silver standing at ₹1,00,500 per kilogram.

Should You Buy Gold Now?

While gold prices have been dropping, experts suggest that this might be a good time to purchase gold for those planning to invest in it. However, it’s essential to:

• Check the Hallmark Certification: Ensure the gold has the Bureau of Indian Standards (BIS) hallmark for purity.
• Compare Prices: Before making a purchase, compare prices and making charges across various jewellery shops to ensure you’re getting the best deal.

Future Outlook on Gold and Silver Prices

Experts predict that gold prices might experience some fluctuations due to the upcoming festival and wedding season in India, which often leads to an increase in demand. Similarly, silver prices may also witness changes based on market trends and demand factors.

Gold and silver prices in India have dropped significantly today, but they remain subject to various global and local factors. It’s crucial for consumers to stay informed about price trends and make well-researched decisions when purchasing precious metals.