Gold Prices in Delhi Experience a Significant Drop

In a surprising turn of events, gold prices in the national capital have plunged below Rs 79,000 per 10 grams this Tuesday. This decline is attributed to the subdued demand from stockists and retailers, as reported by local market analysts.

Understanding the Surge and Subsequent Drop

Over the past year, gold prices have seen a significant rally, increasing by Rs 15,030, or 23.5 per cent. Factors such as geopolitical uncertainties, interest rate cuts by Western central banks, and robust demand from both central banks and high-net-worth individuals have contributed to this surge. However, the recent drop has caught many by surprise.

Silver Prices Also Witness a Sharp Decline

Not just gold, but silver prices have also taken a hit, plunging Rs 2,000 to Rs 89,700 per kilogram. This marks a significant change from the previous session's prices, indicating a volatile market as the year ends.

What Lies Ahead for Bullion?

Chintan Mehta, CEO of Abans Holdings, suggests that gold prices remain steady as traders adjust their expectations for Federal Reserve rate cuts in 2025. The focus now shifts to upcoming US economic data, which could provide further direction for bullion prices. Despite the current low market participation due to the holiday season, analysts anticipate a strengthening of gold prices as investors gradually increase their exposure.