Indian Gold and Silver Prices Decline as Safe-Haven Demand Fades Amid Easing Geopolitical Tensions
Gold prices in India edged lower on June 26, 2025, with August futures on the Multi Commodity Exchange (MCX) falling by ₹10 to ₹98,940 per 10 grams. Silver futures also declined, dropping ₹100 to ₹1,07,900 per kilogram.
The dip in precious metals continues a trend that began earlier in the week, as geopolitical tensions in West Asia receded following a tentative ceasefire between Israel and Iran. The price of 22-carat gold also reduced ₹10 to ₹90,690 per 10 grams.
Geopolitical Relief and Market Dynamics
The implementation of the ceasefire agreement between Israel and Iran has significantly reduced demand for safe-haven assets, leading to outflows from gold and silver.
Over the past three days, 24-carat gold prices in India have tumbled by ₹18,000 per 100 grams, with the price of 10 grams now below the ₹99,900 mark. This sharp correction reflects a broader shift in investor sentiment, as risk appetite improves and capital rotates into riskier assets.
Globally, spot gold prices have shown volatility, but the overall trend has been downward. The US dollar’s firmness, coupled with the easing of Middle East tensions, has further pressured gold prices.
Analysts note that while the recent decline is notable, it represents a normal pullback within a larger bullish trend for gold, with technical support levels for MCX gold pegged at ₹95,800-₹96,700 per 10 grams.
Silver Follows Gold Lower
Silver, often a more volatile metal than gold, has mirrored the downward trend. The price of silver on MCX fell by ₹100 to ₹1,07,900 per kilogram, reflecting subdued industrial demand and reduced speculative interest.
Silver’s dual role as both an industrial and investment asset makes it sensitive to shifts in economic growth expectations and risk sentiment.
City-wise Gold Rates and Market Outlook
Across major Indian cities, gold prices have remained under pressure, though there are minor variations. In Delhi, 24-carat gold was trading at ₹97,340 per 10 grams, while in Chennai, the price stood at ₹97,830 per 10 grams.
Mumbai saw 24-carat gold at ₹97,510 per 10 grams. Despite the recent dip, gold prices remain elevated compared to earlier in the year, reflecting ongoing inflation concerns and central bank buying.
In Chennai, a sovereign of gold (22 carat) was priced at ₹72,560, with prices showing stability after a week of fluctuations. Silver prices in the city were steady at ₹120 per gram, indicating that the recent correction has not significantly impacted local demand.
Technical and Fundamental Outlook
Fundamentally, the outlook for gold remains mixed. While the easing of geopolitical tensions has reduced safe-haven demand, ongoing inflation concerns and potential central bank buying provide a floor for prices.
Market participants are closely watching upcoming US economic data and Federal Reserve policy signals for further direction.
Conclusion
Gold and silver prices in India have continued to decline, with gold falling ₹10 per gram and silver falling ₹100 per kilogram on June 26, 2025. The easing of Middle East tensions and a stronger US dollar have reduced demand for safe-haven assets, leading to profit booking and capital rotation.
While technical support levels suggest limited downside, the near-term outlook remains cautious, with market participants awaiting further cues from global macroeconomic developments.
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