Patna: Gold and silver prices slipped for a second consecutive day on Wednesday, easing from record highs reached earlier this week, according to data from the India Bullion and Jewellers Association (IBJA).
The price of 24-carat gold fell by Rs 1,500 to Rs 1,33,099 per 10 grams, compared with Rs 1,34,599 on Tuesday. Silver prices also declined, with one kilogram of the metal dropping by Rs 2,896 to Rs 2,29,433, down from Rs 2,32,329 a day earlier.
The pullback comes after a sharp rally that saw both metals hit all-time highs on December 29, when gold touched Rs 1,38,161 per 10 grams and silver surged to Rs 2,43,483 per kg. Silver prices had risen for five consecutive trading sessions before turning lower earlier this week.
Despite the recent correction, the longer-term trend remains firmly upward. Over the past year, gold prices have climbed by Rs 56,937 — a rise of about 75% — from Rs 76,162 per 10 grams on December 31, 2024. Silver has posted even steeper gains, rising by Rs 1,43,416, or roughly 167%, from Rs 86,017 per kg over the same period.
Market analysts attribute the sustained rise in gold to a combination of global and macroeconomic factors. A weakening US dollar, following interest rate cuts by the Federal Reserve, has reduced the opportunity cost of holding gold, boosting investor demand. Ongoing geopolitical tensions, including the Russia–Ukraine war, have reinforced gold’s status as a safe-haven asset. In addition, central banks — particularly in China — have been steadily increasing their gold reserves, collectively buying more than 900 tonnes over the past year.
Silver’s rally, meanwhile, has been driven largely by industrial demand. The metal plays a growing role in solar energy, electronics and electric vehicles, shifting its profile from a largely ornamental commodity to a critical industrial input. Fears of new US tariffs have prompted American companies to stockpile silver, tightening global supply, while manufacturers have accelerated purchases amid concerns over potential production disruptions.
For now, traders say the recent decline appears to be a pause after a steep rally rather than a reversal, with bullion markets continuing to reflect global uncertainty and strong underlying demand.
