Key Points
- Gold prices in India fell for the second consecutive day, driven by profit-booking and global volatility linked to the Iran-Israel conflict and US policy moves.
- Silver prices, in contrast, continued their upward trend, reaching record levels in several cities.
- In Mumbai, 24-carat gold traded at ₹1,00,910 per 10 grams, while silver touched ₹1,11,000 per kg.
- Gold remains volatile as investors await the US Federal Reserve’s policy decision and monitor Middle East developments.
- Domestic gold prices have already factored in much of the geopolitical risk, but further escalation could push prices higher.
New Delhi: Gold prices in India continued their downward trend on Wednesday, June 18, 2025, marking the second consecutive day of decline. The drop comes amid heightened global volatility, with the ongoing Iran-Israel conflict and mounting pressure from the United States influencing investor sentiment and market movements.
Latest Gold and Silver Rates Across Major Cities
In Mumbai, the financial hub, 24-carat gold was quoted at ₹1,00,910 per 10 grams, while 22-carat gold stood at ₹92,500 per 10 grams. Silver prices surged, with the metal trading at ₹1,11,000 per kg—reflecting a strong safe-haven demand.
In New Delhi, gold prices remained slightly higher, with 24-carat gold at ₹1,05,241 per 10 grams and 22-carat gold at ₹96,955 per 10 grams. Silver in the capital also saw a significant jump, reaching ₹1,15,354 per kg.
Chennai reported 24-carat gold at ₹1,00,448 per 10 grams and 22-carat gold at ₹91,990, with silver priced at ₹1,10,100 per kg.
Market Drivers: Geopolitical Tensions and US Fed Policy
The ongoing conflict in the Middle East has injected significant uncertainty into global markets. Traditionally, such geopolitical tensions drive investors toward safe-haven assets like gold and silver. However, analysts note that much of the risk has already been priced in, and recent declines are attributed to profit-booking and anticipation of the US Federal Reserve’s upcoming policy decision.
Industry experts suggest that any escalation in the Iran-Israel conflict or dovish signals from the US Fed could quickly reverse the current downward trend in gold prices, potentially pushing them back above the ₹1,05,000 mark.
Silver Outperforms Gold
While gold has seen some correction, silver continues to outperform, with prices reaching new highs across the country. In New Delhi, silver touched ₹1,15,354 per kg, while in Mumbai, it was at ₹1,11,000 per kg. This surge is attributed to increased industrial demand and its role as a secondary safe-haven asset during times of geopolitical stress.
Outlook for Investors
Analysts recommend that investors closely monitor both the geopolitical landscape and the US Federal Reserve’s policy signals. Gold remains a preferred hedge against uncertainty, and any further instability could trigger another rally. For now, silver appears to offer stronger short-term momentum, given its robust demand and price trajectory.
Gold prices in India have dipped for a second day amid profit-booking and global volatility, while silver has surged to record highs. The ongoing Iran-Israel conflict, US policy moves, and anticipation of the Federal Reserve’s decision are keeping bullion markets highly volatile. Investors are advised to stay alert to further geopolitical developments and central bank cues for the next move in precious metals.
