Gold prices in India declined on Monday following a seven-week rally, as investors lock in profits and await US inflation data that could influence Federal Reserve interest rate decisions.
Gold prices in India eased on Monday after last week’s sharp rally took the metal to a seven-week high, as investors locked in profits and turned their attention to upcoming US inflation data for clues on the Federal Reserve’s next move on interest rates.
According to Goodreturns, the price of 24-carat gold fell by Rs 38 per gram to Rs 15,197, while 22-carat gold slipped by Rs 35 to Rs 13,930 per gram. The pullback came after a week in which 24-carat bullion had risen by more than Rs 50,000, underscoring how quickly momentum has swung in a market still sensitive to macroeconomic signals.
The softer tone was not limited to gold. Silver prices were unchanged at Rs 2,45,000 per kilogram, suggesting a pause after recent gains across precious metals. Market participants have been weighing the outlook for US monetary policy alongside broader concerns about inflation and global growth, with bullion still supported by its safe-haven appeal even as traders took some money off the table.
That broader backdrop matters because the precious-metals rally has been running on more than short-term speculation. The World Silver Survey 2026, published by the Silver Institute, said silver prices hit record highs in 2025 amid a fifth straight year of market deficit, while tighter supply and stronger investor interest helped lift the annual average by 42%. It also noted that elevated prices have begun to weigh on jewellery demand in India, where fabrication fell sharply as buyers shifted to lighter pieces or delayed purchases.
For gold, the current retreat follows a pattern seen earlier this year. An ICICI Prudential AMC factsheet in March said prices had already been buffeted by intermittent profit-taking and shifting expectations around US policy, even as geopolitical tensions and stronger-than-expected American economic data offered some support. On Monday, analysts remained constructive in the near term, with Prithviraj Kothari of RiddiSiddhi Bullions saying a sustained break above key technical levels could leave room for further gains in both gold and silver.
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