Gold and Silver Prices Tumble: 24K Gold Dips rupees5,500 from Record High

Investors and consumers are seeing a notable correction in precious metals markets: 24-carat gold slid by ₹5,500 from its all-time high, while silver also saw significant declines. Here’s a comprehensive analysis of what’s behind the drop, current price trends, and what it means for you.

Gold’s Big Drop & Price Update

On MCX, the benchmark for commodity futures in India, 24K gold prices plunged over 5%, plummeting by approximately ₹5,448 per 10 grams from the record ₹1,01,078 set on June 16. As of Friday, June 27, gold traded near ₹95,630/10 g .

This aligns with city-by-city data: in Delhi, 24K gold sits around ₹95,970/10 g, while Mumbai, Chennai, and Kolkata report rates between ₹96,000–96,410/10 g .

22K gold also softened by ₹5,500, hovering around ₹89,000–₹89,500/10 g .

Why Are Prices Falling?

Several converging factors are driving this correction:

1. Eased Geopolitical Tensions
   A fragile ceasefire between Israeli and Iranian forces eased market jitters, damping the demand for gold as a safe-haven asset .

2. Global Equity Market Rally
   As global stock markets recovered, investors pivoted from safe-haven commodities like gold and silver .

3. Positive U.S.–China Trade Signals
   Breakthroughs in U.S.–China trade talks, including agreements on rare earth exports, bolstered investor sentiment and minimized the appeal of gold .

4. Cooling Inflation Outlook in the U.S.
   Anticipation around U.S. inflation data—specifically core Personal Consumption Expenditures—suggests possible Federal Reserve rate cuts later in the year, reducing gold’s allure .

Silver Also Sees a Decline

Silver, too, dropped by around ₹300–₹400 per kg. Domestic prices fell to approximately ₹106,700–₹107,000/kg, while international spot rates dipped nearly 0.5% to $36.44/oz .

City-Wise Price Snapshot

Here’s how the corrected gold prices appear across metro cities as of June 27:

Global Context & Futures Market

• Spot gold traded around $3,288.55/oz — part of a broader 2.3% weekly decline .

• U.S. gold futures dropped to $3,300.40/oz .

• Platinum slipped nearly 2.8%, but palladium rose to a multi-month high of $1,135.36/oz .

These global movements mirror India’s domestic trends.

Is This a Buying Opportunity?

Market analysts suggest the current dip offers a potentially attractive entry point for buyers ahead of festival seasons and weddings. However, the decline may continue, subject to global developments .

Aksha Kamboj, IBJA Vice-President, noted that continued central bank purchases and festive demand could limit the downside .

Similarly, An IndiaTimes report echoed this sentiment — it may be “a golden opportunity” for buyers as the price dip continues .

What to Watch Next

1. Middle East Stability – any renewed tensions could reverse current trend.

2. U.S. Inflation Data – new PCE reports could shift Fed’s rate path and bullion demand.

3. Equity Market Momentum – stronger stock rallies may keep pressure on precious metals.

4. Central Bank Buying – sustained demand from central banks could stabilize, or even lift, prices .

India’s gold market is witnessing its second major correction this week, with 24K gold falling ₹5,500 from record highs and silver mirroring the drop.

The decline stems from a mix of geopolitical relief, improved global risk appetite, and signs of progress in U.S.–China trade talks. Whether this marks a short-term buying opportunity or the start of a deeper correction depends on upcoming global events—especially inflation data, central bank activity, and geopolitical shifts.

For now, while the golden shimmer may seem to set, investors and buyers find themselves weighing the dip against future uncertainties.