Gold rates in India today
- 24K gold: ₹95,020 per 10 grams
- 22K gold: ₹87,100 per 10 grams
- 18K gold: ₹71,270 per 10 grams
(Source: Goodreturns)
What’s driving the decline?
The dip comes after a strong rally in gold this year. A slightly stronger dollar made gold more expensive for foreign buyers.
This dented demand in global markets and pulled Indian prices lower.
“Gold is reacting to optimism around a ceasefire between Russia and Ukraine,” said Kyle Rodda, financial market analyst at Capital.com. “There’s also some cooling off after the U.S. credit downgrade-driven surge.”
Spot gold fell 0.4% to $3,215.31 an ounce, while US gold futures dropped 0.5% to $3,218.40 an ounce.
Buyers still emerged when prices dipped below the $3,200 per ounce level, Rodda noted, but added that a larger pullback is likely if geopolitical risks ease further.
What’s happening globally?
Markets saw relief after US President Donald Trump’s call with Russian President Vladimir Putin led to a potential ceasefire path. Investors interpreted this as a reduction in global uncertainty—lessening the appeal of gold, traditionally a safe haven.
Meanwhile, the dollar firmed slightly after touching a one-week low in the previous session. The US currency’s strength tends to push gold lower, since the metal is priced in dollars.
At the same time, the downgrade of the US sovereign rating by Moody’s—from Aaa to Aa1—continues to stir anxiety. Several US Fed officials have sounded cautious, as they assess how this may affect future interest rate policy.
Outlook
Despite the short-term softness, gold remains one of the best-performing assets in 2025. Prices have hit record highs multiple times this year, and analysts expect continued interest amid persistent fiscal and geopolitical concerns.
Markets are now factoring in at least 53 basis points of US rate cuts this year, with the first expected in October. Lower interest rates typically support gold, as they reduce the opportunity cost of holding non-yielding assets.
Should investors buy the dip?
Many investors in India still see gold as a hedge. Demand tends to rise during festive and wedding seasons. Some are using dips to accumulate.
“If geopolitical risks reduce and yields rise, we could see more pressure on prices,” Rodda warned. “But gold’s uptrend for the year remains intact.”
For now, buyers may find opportunities—but should tread carefully amid shifting global cues.
