Gold and silver prices in India witnessed a notable decline on July 17, 2025, breaking their recent upward trend. Gold slipped ₹500 to close at ₹98,870 per 10 grams, while silver saw a sharper ₹1,000 drop, ending at ₹1,11,000 per kilogram, according to data from major bullion dealers and exchanges.

This fall comes just two days after silver touched a record ₹1,12,000 per kg on July 15. The correction is attributed to profit-booking, a stronger rupee, and lower domestic demand.

What’s Happening in the Global Markets?

In contrast to the domestic trend, global gold prices edged higher, with spot gold gaining $16.41 or 0.49% to settle at $3,341.37 per ounce. Analysts say continued economic uncertainty, inflation fears, and geopolitical tensions have propped up gold as a safe-haven asset globally.

However, the silver market displayed mixed signals, with a slightly bearish tone driven by concerns over slowing industrial demand from China and other emerging economies.

Why Are Indian Prices Falling?

Experts say the fall in Indian gold and silver prices is largely due to local factors, despite the global uptick:

• Rupee Strength: The Indian rupee appreciated against the US dollar, making imported gold slightly cheaper.

• Profit-Booking: After touching record highs earlier this week, many investors and traders opted to lock in profits.

• Retail Demand Slowdown: High prices have curtailed consumer demand ahead of the festive season.

• Muted Buying in Rural Markets: Unfavourable monsoon progress has impacted gold buying in tier-2 and rural areas.

Analyst View

Speaking to media, Anuj Gupta, Head of Commodity & Currency at HDFC Securities, said:

“Indian bullion prices are correcting due to the strengthening rupee and lower physical demand. However, the global outlook remains bullish due to ongoing recession fears and central banks’ buying."

Nisha Sharma, a senior commodities strategist at Motilal Oswal, noted:

“We expect some consolidation in gold prices around ₹98,000–₹99,500 in the near term, while silver may remain volatile depending on industrial demand signals.”

Investment Outlook

Despite the short-term dip, gold remains a top investment choice, especially as central banks globally continue their gold purchases to hedge against de-dollarisation and geopolitical instability.

Silver, though more volatile, is expected to see renewed interest in the medium term with increased usage in green energy, EVs, and electronics.

Key Technical Levels to Watch

Conclusion

Even as global gold prices rise, domestic gold and silver have cooled off due to currency strength and weak demand. This correction offers a possible entry point for long-term investors, but experts advise caution amid ongoing volatility.

Stay tuned for further updates as global cues and festive demand begin to influence precious metal trends over the coming weeks.

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