Gold prices in Delhi fell sharply by Rs 3,000 on Tuesday, settling at Rs 1,47,800 per 10 grams, according to the All India Sarafa Association. This level was last seen on March 27, 2026, when gold was quoted at the same price. The decline was attributed to a strengthening US dollar, which made dollar-denominated commodities more expensive for holders of other currencies.
Silver Suffers Steep Decline
Silver prices witnessed an even sharper fall, plunging by Rs 10,500 to Rs 1,72,000 per kilogram. The metal, which had been trading at elevated levels in recent weeks, faced heavy selling pressure amid a broad-based sell-off in precious metals. The dollar index rose to a multi-week high, dampening demand for alternative assets.
Impact of Global Cues
Market analysts noted that the rally in the US dollar was driven by hawkish comments from Federal Reserve officials, signaling potential interest rate hikes. This strengthened the greenback and weighed on gold and silver prices globally. On the international front, spot gold in London declined by 1.2% to $2,340 per ounce, while silver fell 3.5% to $29.80 per ounce.
According to a senior analyst at a Mumbai-based brokerage, “The dollar rally is the primary factor behind the decline in precious metals. Investors are shifting towards the dollar as a safe haven, reducing demand for gold and silver.”
Domestic Market Reaction
In Delhi’s bullion market, gold of 99.9% purity traded at Rs 1,47,800 per 10 grams, down from Rs 1,50,800 on the previous trading day. Gold of 99.5% purity also fell by Rs 3,000 to Rs 1,47,100 per 10 grams. Silver coins, however, remained steady at Rs 97,000 for buying and Rs 98,000 for selling, reflecting limited retail demand.
Jewelers reported a dip in footfall as customers postponed purchases anticipating further price corrections. “Consumers are waiting for prices to stabilize before making big-ticket buys,” said a jeweler from Chandni Chowk.
Outlook for Precious Metals
Experts suggest that gold and silver prices may remain under pressure in the near term if the dollar continues to strengthen. However, geopolitical uncertainties and central bank buying could provide support. The next trigger for prices will be US inflation data due later this week, which could influence the Fed’s policy stance.
