New Delhi: Gold and silver prices witnessed a massive correction in the domestic bullion market on Tuesday, wiping out the gains recorded during the previous trading session. The price of 24-karat gold tumbled by 1,876 rupees per 10 grams, while silver experienced a staggering drop of 10,564 rupees per kilogram, marking a continuation of the downward trajectory seen in precious metals over recent weeks.
According to the latest report released by the Indian Bullion Jewelers Association, the spot price for 24-karat gold stood at 144,788 rupees per 10 grams on Tuesday afternoon. This substantial decline comes immediately after Monday’s peak, where the premium metal had climbed to 146,664 rupees per 10 grams, contrasted against Friday’s closing rate of 144,941 rupees. Across other purity segments in the retail bullion market, 23-karat gold settled at 144,208 rupees, 22-karat jewellery-grade gold rested at 132,626 rupees, 18-karat gold reached 108,591 rupees, and 14-karat gold dropped to 84,701 rupees per 10 grams. Meanwhile, industrial silver prices fell sharply to 227,235 rupees per kilogram, registering a steep descent from Monday’s valuation of 237,799 rupees.
Market analysts trace this sudden price correction to a combination of stringent domestic policy interventions and global macroeconomic shifts. A primary driver behind the correction is the central government’s recent decision to aggressively hike import taxes on precious metals. The import duty on gold has been raised to 15 percent, up significantly from the previous baseline of 6 percent, which was aimed at stabilizing trade balances. Furthermore, Prime Minister Narendra Modi issued a public appeal last month, urging citizens to avoid purchasing physical gold for at least a year to curb non-essential imports and encourage financial investment alternatives.
On the international front, a surging US Dollar Index has applied heavy downward pressure on commodities. The strengthening greenback has altered investor sentiment, prompting a capital flight away from traditional safe-haven metals like gold and silver in favour of dollar-backed assets. Financial experts also note that broader geopolitical developments and shifts in global conflict zones since the outbreak of recent hostilities have contributed to winding down speculative premiums, resulting in a sustained correction across the commodity trading complex.
