Gold Tumbles Rs 3,200 to 10-Month Low of Rs 1.42 Lakh/10gm

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New Delhi- Gold prices in the national capital dropped Rs 3,200 to a 10-month low of Rs 1.42 lakh per 10 grams on Saturday, extending losses for the second straight session amid a sharp global selloff in precious metals.

The yellow metal of 99.9 per cent purity fell Rs 3,200 to Rs 1,42,000 per 10 grams, inclusive of all taxes, from Friday’s close of Rs 1,45,200 per 10 grams, according to the All India Sarafa Association.

It was last quoted at Rs 1,42,300 per 10 grams on December 26, 2025.

Silver prices also continued their downward trajectory, declining Rs 4,200 to Rs 1,86,000 per kilogram, inclusive of all taxes, from the previous close of Rs 1,90,200 per kg.

The white metal was last trading around these levels on December 8, 2025, when it was quoted at Rs 1,85,000 per kg.

“Gold and silver prices were weighed down by rising energy prices, which fuelled inflation concerns, and hawkish commentary from the US Federal Reserve,” said Rahul Khetawat, Senior Vice President and Fund Manager at 360 ONE Asset.

These developments tempered expectations of monetary easing and put pressure on precious metals, leading to a correction in prices, he said.

In overseas markets, spot gold plunged by USD 145.84, or nearly 4 per cent, to close at USD 3,875.55 per ounce on Friday, hitting its lowest level in over a year. It was last quoted around this level at USD 3,887.09 per ounce on October 3, 2025.

Spot silver also tumbled USD 3.04, or 6 per cent, to settle at USD 49.12 per ounce. The metal was last quoted at USD 48.02 per ounce, recorded on November 6, 2025.

“Gold fell towards USD 3,800 and silver slipped below USD 50 per ounce, while Shanghai contracts also dropped sharply while still in premium to global markets, especially for white metal,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd.

He added that higher oil prices and firm inflation have revived expectations of a December Fed hike, strengthening the case for higher-for-longer interest rates by the US Federal Reserve.

Modi also pointed out that an AI-led equity rout added forced liquidation and cash-raising pressure, while silver’s industrial exposure amplified its fall. In China, reports of investors selling gold to raise cash are a possible additional factor, though not confirmed.

He noted that speculative short positions had also built up ahead of the US mid-term elections, with President Donald Trump’s majority likely to be an important factor in determining the further trajectory of bullion prices.

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