Market analysts attribute the fall to a cooling global trade war and waning demand for safe-haven assets like gold. As geopolitical tensions ease, investors are shifting focus away from traditional safety nets, leading to the current correction in gold prices.
The decline in gold prices was seen for the second consecutive day on Saturday, with rates falling sharply in the Indian market. The yellow metal, which recently touched a record high of Rs 1 lakh per 10 grams, has now dropped to around Rs 95,000 — a significant correction of Rs 5,000. A similar trend is visible in the international market, where gold that had peaked at $3,500 per ounce in April has now slipped to approximately $3,140 per ounce.
Market analysts attribute the fall to a cooling global trade war and waning demand for safe-haven assets like gold. As geopolitical tensions ease, investors are shifting focus away from traditional safety nets, leading to the current correction in gold prices.
According to experts, the downtrend may not be over yet. Many believe that the kind of impressive returns seen in gold during 2024 and early 2025 are unlikely to repeat in the near term. However, they still maintain that gold remains a strong investment option for the long haul.
Speaking to India TV, Yogesh Singhal, Chairman of the All Bullion and Jewellers Association, recalled a similar phase in 2013 when gold saw a steep correction. He pointed out that if similar conditions re-emerge, global gold prices could fall from $3,230 to as low as $1,820 per ounce. If such a scenario plays out, domestic gold rates in India could drop further — possibly settling between Rs 55,000 to Rs 60,000 per 10 grams.
Check gold prices in different cities on May 17, 2025:
| City | 22 Carat Gold Rate (Per 10 gm) | 24 Carat Gold Rate (Per 10 gm) |
| Delhi | Rs 87,360 | Rs 95,290 |
| Mumbai | Rs 87,210 | Rs 95,140 |
| Kolkata | Rs 87,210 | Rs 95,140 |
| Chennai | Rs 87,210 | Rs 95,140 |
| Ahmedabad | Rs 87,260 | Rs 95,190 |
| Pune | Rs 87,210 | Rs 95,140 |
| Lucknow | Rs 87,310 | Rs 95,290 |
| Bengaluru | Rs 87,210 | Rs 95,140 |
| Noida | Rs 87,360 | Rs 95,290 |
| Hyderabad | Rs 87,210 | Rs 95,140 |
Why does the price of gold fluctuate?
The price of gold fluctuates due to a variety of factors, including insights from esteemed jewellers. Key influences include global demand for gold, exchange rate fluctuations, prevailing interest rates, and government regulations governing gold trading. Additionally, international events such as the overall state of the global economy and the strength of the US dollar relative to other currencies significantly affect gold prices in the Indian market.
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