Gold prices in India declined on Friday amid a global sell-off and cautious consumer sentiment, despite positive signs from international markets and expectations of a Fed rate cut.
Gold prices in India extended their slide on Friday, with 24-carat gold easing to Rs 15,289 per gram and 22-carat gold falling to Rs 14,015, according to Goodreturns. The latest drop came after a sharp run-up earlier in the week, leaving 24-carat bullion down by Rs 19,700 per 100 grams over two days.
Silver was steadier, with Delhi prices unchanged at Rs 255 a gram, or Rs 2,55,000 a kilogram. Goodreturns said 18-carat gold also softened, reflecting a broader pullback across quoted domestic rates.
The retreat followed a weaker session in global markets, where gold was heading for a weekly loss as investors took profits after a rally driven by softer-than-expected US inflation data. Prithviraj Kothari, managing director at RiddiSiddhi Bullions and president of the India Bullion and Jewellers Association, said gold had held near a two-month high as traders weighed the inflation figures and the next producer price report for clues on the Federal Reserve’s policy path. He added that markets were pricing a lower chance of a September rate move than before, while geopolitical tensions also remained in focus.
Even so, the broader backdrop for gold remains supportive. The World Gold Council said India’s gold market strengthened in August, with international prices reaching $3,335 an ounce in the first half of the month, helped by a weaker dollar, expectations of a Fed rate cut and persistent inflation concerns. The council also said gold has outperformed in 2025, delivering a 28% return in dollar terms so far this year.
Yet the recent price drop has not automatically translated into a buying rush. A Firstpost report said many consumers are waiting for more stability before returning to the market, while Bullion World has previously noted that India’s jewellery demand has remained resilient through wedding and discretionary spending, with bridal pieces still dominating a large share of demand. That combination suggests the market is being shaped as much by caution as by price.
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