Gold rates declined across major Indian cities at the start of the week, while silver also traded lower. Global factors, including interest rate expectations and geopolitical developments, continued to influence precious metal prices.

Gold prices extended their downward trend on Monday, offering some relief to buyers planning jewellery purchases or investments. Rates eased in several major cities, with both 22-carat and 24-carat gold witnessing a decline. Silver prices also remained under pressure in the domestic market.

Market sentiment continues to be influenced by expectations surrounding U.S. monetary policy, rising crude oil prices, and ongoing geopolitical tensions in the Middle East.

Gold Rates in Major Indian Cities

Here are the latest gold prices (per 10 grams):

Among the major metro cities, Mumbai, Kolkata, Chennai and Hyderabad recorded 22-carat gold at ₹1,31,340 per 10 grams, while Delhi and Jaipur remained slightly higher.

Silver Price Today

Silver also witnessed a decline in the domestic market.

• Silver Price: ₹2,29,900 per kilogram

Although domestic prices softened, international silver prices continued to show strength, reflecting mixed global market sentiment.

Why Are Gold Prices Falling?

Several international developments are influencing the movement of precious metals:

1. Expectations of Higher U.S. Interest Rates

Investors are closely monitoring comments from U.S. Federal Reserve policymakers. If interest rates rise further, interest-bearing assets such as bonds become more attractive, reducing demand for non-yielding assets like gold.

2. Rising Crude Oil Prices

Brent crude oil has remained elevated amid geopolitical tensions, raising concerns about inflation. Higher inflation expectations often influence central bank policy decisions, which in turn affect gold prices.

3. Global Geopolitical Uncertainty

Developments in the Middle East continue to keep financial markets on edge. While geopolitical risks generally support safe-haven demand for gold, expectations of tighter monetary policy have limited gains in the precious metal.

International Gold Market Update

Global bullion prices also traded lower during the session.

• Spot Gold: Around $4,000.55 per ounce
• U.S. Gold Futures (August Contract): Around $4,005.90 per ounce

Market participants remain focused on upcoming economic data and central bank commentary for further direction.

Should Investors Buy Gold Now?

Gold continues to play an important role in portfolio diversification and long-term wealth preservation. However, experts generally recommend that investors avoid making decisions based solely on short-term price movements.

Those planning to invest may consider:

• Investing gradually instead of making a lump-sum purchase.
• Comparing physical gold with digital gold, Sovereign Gold Bonds (when available), or Gold ETFs.
• Monitoring global economic developments before making large investments.
• Buying jewellery only after checking making charges and purity certification.

Final Takeaway

Gold prices opened the week on a softer note across India, while silver also traded lower in the domestic market. Expectations of higher U.S. interest rates, elevated crude oil prices, and ongoing geopolitical uncertainty remain key factors driving precious metal prices.

Investors and jewellery buyers should keep an eye on both domestic and international market developments, as gold and silver prices may continue to fluctuate in the coming days.