Gold prices slide sharply ahead of Bakrid, buyers return to jewellery stores

Gold prices dropped sharply across India on Thursday, bringing relief to jewellery buyers after weeks of record-high rates. The decline continued for the third straight day and triggered fresh interest in gold purchases ahead of Eid-al-Adha and the upcoming wedding season.

Jewellers in several cities reported higher customer enquiries as retail rates softened significantly. Many buyers who had delayed purchases earlier due to soaring prices returned to markets after the latest correction in rates.

According to market trends, 24-carat gold prices fell by around Rs 2,230 per 10 grams on Thursday. The precious metal now sells at nearly Rs 1.56 lakh per 10 grams in major Indian markets. Meanwhile, 22-carat gold also witnessed a major drop and currently trades close to Rs 1.43 lakh per 10 grams. The decline also affected 18-carat gold, which now sells at lower retail levels compared to earlier this week.

Bulk gold purchases also became cheaper. Rates for 100 grams of 24-carat gold slipped by more than Rs 22,000, while 22-carat gold prices for the same quantity also moved lower. The sharp fall attracted attention from traders and consumers because gold prices had touched unusually high levels during recent weeks.

In local jewellery markets, shop owners observed mixed reactions from customers. Some consumers immediately rushed to book ornaments and coins, hoping prices may stabilise before the festive rush intensifies. Others preferred to wait and watch for another possible correction over the next few sessions.

Silver prices also recorded a steep decline on Thursday. One kilogram of silver became cheaper by nearly Rs 10,000 in domestic markets. Traders linked the correction to weak international cues and lower industrial demand expectations.

Commodity trading activity remained limited because domestic commodity exchanges stayed closed on account of the Bakrid holiday. However, retail prices still reflected movements from global bullion markets.

Internationally, gold prices dropped to their lowest level in nearly two months. Analysts connected the decline to growing uncertainty surrounding global interest rates and rising geopolitical tensions in West Asia. Fresh reports regarding American military action near Iran added pressure on financial markets and strengthened the US dollar, which usually affects bullion demand worldwide.

Spot gold prices slipped below the key $4,400-an-ounce mark during global trading hours. Investors also reacted to rising bond yields and uncertainty over future policy decisions by the US Federal Reserve.

Bullion experts explained that gold currently faces pressure from two directions. On one side, geopolitical instability usually supports safe-haven buying. On the other side, stronger dollar movement and higher bond returns reduce investor appetite for precious metals.

Market analysts believe gold may continue witnessing sharp swings in the short term as traders closely track developments in global conflicts, inflation trends and interest rate signals from the United States.

At the ground level, Indian buyers appeared more focused on affordability than global market complexities. Jewellery stores in Delhi, Mumbai, Jaipur and Ahmedabad reported steady footfall through the day as families explored festive purchases after the sudden correction in prices.

Many middle-class buyers had stayed away from gold shopping earlier this month because rates had crossed psychological comfort levels. Now, the latest decline has once again revived hopes among consumers planning weddings, religious purchases and investment buying.

Despite the correction, traders warned that volatility may continue over the coming weeks. They advised buyers to monitor daily price movements closely before making large purchases.