Gold Falls to Three-Week Low in Delhi, Silver Slides Rs 2,000

Gold prices extended their downward trend in the national capital on Friday, falling to a three-week low as sluggish local demand weighed on the bullion market. Silver prices also declined sharply, continuing their recent weakness amid sustained liquidation by traders.

According to the All India Sarafa Association , the price of 99.9 per cent purity gold fell by Rs 800 to Rs 1,45,500 per 10 grams (inclusive of all taxes), compared with Rs 1,46,300 per 10 grams in the previous trading session. The latest decline marks the lowest level for the precious metal in nearly three weeks. Gold was last quoted near this level on June 25 , when it traded at Rs 1,45,300 per 10 grams .

Silver also witnessed a significant correction, with prices dropping Rs 2,000 to Rs 2,22,500 per kilogram (inclusive of all taxes), down from Rs 2,24,500 per kg on Thursday.

Market participants said gold resumed its decline after a brief two-session pause , while silver continued to face selling pressure due to weak domestic demand and ongoing liquidation by traders.

Despite the weakness in domestic bullion prices, the international market presented a mixed picture. Spot gold gained USD 15.42, or 0.39 per cent , to trade at USD 3,992 per ounce , supported by global buying interest. However, spot silver edged lower to USD 55.37 per ounce , reflecting cautious sentiment in the broader precious metals market.

Analysts said domestic bullion prices continue to be influenced by a combination of local demand trends, investor sentiment, and global market movements . While international gold prices posted modest gains during the session, subdued buying activity in the local market kept pressure on domestic rates.

Traders will now closely monitor upcoming global economic cues and domestic demand patterns for further direction in the bullion market, as volatility is expected to persist in the near term.