Gold, silver extend slide as dollar surge weighs on investor sentiment
New Delhi: Gold and silver prices fell for the third straight day in the national capital on Thursday, extending the downward trend amid a decline in global bullion prices as a resurgent US dollar waned investors’ appetite for the precious metals.
According to the All India Sarafa Association, gold of 99.9 per cent purity fell by Rs 2,800 to hit a three-month low of Rs 1,45,300 per 10 grams (inclusive of all taxes) from Rs 1,48,100 in the previous session.
Silver also weakened, declining by Rs 5,000 to Rs 2,26,000 per kg, hitting a six-month low. The white metal had settled at Rs 2,31,000 per kg in the preceding session.
Silver prices hovered around these levels on December 24, 2025, when it traded at Rs 2,27,000 per kg.
Analysts said bullion prices remained trapped in a broad correction as investors continued to favour the US dollar over precious metals.
“Gold prices in the domestic markets declined on Thursday as a strong US dollar and expectations of a prolonged period of higher interest rates continued to weigh on precious metals,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
The weakness was mirrored in overseas markets, where spot gold dropped below the key USD 4,000 per ounce level for the first time since November 2025.
The yellow metal slipped USD 21.15, or 0.53 per cent, to USD 3,978.06 per ounce. It was seen around these levels on November 6 last year, when the prices had settled at USD 3,977.15 per ounce.
“Spot gold was trading at USD 3,980 per ounce in the overseas trade. The precious metals’ multi-year rally has undergone a sharp reversal, prompting some Chinese banks to scale back services linked to retail gold trading,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Gold has fallen 7.5 per cent so far this year as concerns over the Federal Reserve’s policy outlook continue to overshadow demand for the precious metal, he added.
Spot silver also declined 0.56 per cent to hit a six-month low of USD 57.10 per ounce in the overseas trade.
Investors are also awaiting a fresh set of US economic indicators that could shape expectations for interest rates and currency markets.
“Market Participants will shift their focus to next week’s US nonfarm payrolls and unemployment data, which are expected to provide fresh direction for gold and the dollar,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
On the outlook, Trivedi stated volatility is likely to remain elevated, with bullion prices increasingly taking cues from movements in the dollar and incoming US macroeconomic data rather than geopolitical developments.
