Key Points:
- Gold prices in India fell due to a stronger U.S. dollar.
- Chennai recorded the highest city rates.
- Festive demand may support buying.
Gold Prices extend fall in India for a third straight session on Tuesday as a stronger U.S. dollar and shifting global demand weighed on bullion markets, with 24-carat gold at INR 1,57,410 per 10 grams and 22-carat at INR 1,44,290.
Strong Dollar And Global Trends Weigh On Bullion
Gold rates continued their downward trend across Indian markets on Tuesday as global economic pressures pushed investors away from the precious metal. According to market data, 24-carat gold traded at about INR 1,57,410 per 10 grams, while 22-carat gold, widely used in jewelry, stood at INR 1,44,290.
Analysts say the decline reflects a strengthening U.S. dollar, which makes dollar-priced commodities such as gold more expensive for international buyers. The shift has prompted selling pressure in global bullion markets.
“Dollar strength is currently the biggest factor affecting gold,” said commodities analyst Rohan Mehta of Mumbai-based trading firm Bullion Insights. “As the currency rises, global investors reduce exposure to gold, leading to price corrections.”
In international markets, spot gold hovered near USD 5,010 per ounce, down from record levels reached earlier this year.
Economists also point to expectations that the U.S. Federal Reserve may keep interest rates higher for longer. Higher interest rates typically reduce the appeal of non-yielding assets such as gold.
City-Wise Gold Rates Reflect Regional Differences
Gold Prices Extend Fall varied slightly across major Indian cities because of local taxes, transportation costs and regional demand patterns.
In Delhi, 24-carat gold traded at INR 1,57,560 per 10 grams, while 22-carat gold stood at INR 1,44,440. Mumbai reported prices close to the national benchmark, with 24-carat gold at INR 1,57,410 and 22-carat at INR 1,44,290.
Chennai recorded some of the highest rates among major markets, with 24-carat gold at INR 1,60,470 per 10 grams and 22-carat at INR 1,47,090. Similar price levels to Mumbai were seen in Kolkata, Bengaluru and Hyderabad.
Other northern cities, including Jaipur, Noida, Gurugram, Ghaziabad and Lucknow, reported 24-carat gold at about INR 1,57,560 per 10 grams. Cities such as Ahmedabad and Bhopal saw prices around INR 1,57,460 for the same quantity.
Jewelry traders say regional variations remain small but can influence retail demand during peak buying seasons.
Festive Demand May Support Prices
Despite the decline, the price correction could encourage purchases as India enters a key period for gold consumption.
Spring festivals such as Ugadi and Gudi Padwa, along with the traditional Hindu wedding season, typically boost jewelry demand across the country.
“Lower prices are drawing customers back into showrooms,” said Anjali Shah, a jewelry retailer in Mumbai. “Many buyers had postponed purchases earlier this month when prices were near record highs.”
Market participants estimate that gold has fallen nearly 9 percent since the beginning of March, creating what some analysts describe as a temporary buying opportunity.
Meanwhile, silver prices also declined alongside gold. The metal traded near INR 2,69,900 per kilogram in major Indian markets on Tuesday.
Silver has been particularly sensitive to global commodity trends and industrial demand expectations, analysts said. Weak sentiment in broader commodity markets has added to selling pressure.
Experts caution that Gold Prices extend fall may remain volatile in the coming weeks as investors closely track global interest-rate signals, geopolitical tensions and currency movements.
“Short-term fluctuations are likely,” Mehta said. “But for long-term investors in India, gold still plays an important role as a hedge against inflation and economic uncertainty.”
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