Domestic gold prices extended their losses as global market sentiment remained under pressure. Here's how much 22K and 24K gold cost across key cities on July 18.

Gold prices continued to soften in India's retail market for the second consecutive day, while silver also remained under pressure. The decline comes amid changing global economic expectations, with investors closely monitoring geopolitical developments and interest rate outlooks in the United States.

According to the latest market rates, the price of 24-carat gold slipped in several major cities, while silver prices also registered a decline due to subdued domestic demand and continued profit booking in the precious metals market.

Why Are Gold Prices Falling?

Market analysts attribute the recent weakness in gold prices to growing expectations that the U.S. Federal Reserve could maintain a tighter monetary policy if inflationary pressures persist.

Fresh geopolitical tensions between the United States and Iran have pushed energy prices higher, raising concerns about inflation globally. While geopolitical uncertainty usually supports safe-haven assets such as gold, expectations of higher interest rates have weighed on bullion prices.

Higher interest rates generally reduce the appeal of non-interest-bearing assets like gold because investors may find better returns in interest-bearing financial instruments.

As a result, precious metals have witnessed selling pressure in both domestic and international markets.

Latest Gold Rates in Major Indian Cities

Here are the retail prices of gold in major cities on July 18:

Prices may vary slightly across jewellers depending on local taxes, making charges and other applicable charges.

International Gold Market Remains Under Watch

In the global bullion market, spot gold was trading near $3,992 per ounce.

International gold prices continue to react to a combination of geopolitical developments, inflation expectations, central bank policy signals and movements in the U.S. dollar.

Traders are also keeping a close watch on upcoming economic data that could influence the Federal Reserve's next policy decision.

Silver Prices Also Extend Losses

Silver prices also remained weak in the domestic market.

On July 18, silver was trading at approximately ₹2,29,900 per kilogram.

According to market participants, lower buying interest from jewellers and industrial consumers has reduced demand. Continuous profit booking by investors has also contributed to the recent decline in silver prices.

In the international market, spot silver was trading around $55.37 per ounce.

Should Buyers Purchase Gold Now?

Gold prices often fluctuate due to domestic demand, international market movements, exchange rate changes and global economic developments. Experts suggest that long-term investors should focus on their financial goals instead of making decisions based solely on short-term price movements.

Those planning to purchase jewellery may also consider factors such as making charges, GST and product certification in addition to daily bullion rates.

With global economic uncertainty, inflation concerns and central bank decisions continuing to influence market sentiment, precious metal prices are expected to remain volatile in the coming sessions.