Gold and Silver Prices Fall for Second Consecutive Day
Gold and silver prices witnessed a significant decline for the second consecutive trading session, reflecting ongoing volatility in global commodity markets. According to data released by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold has fallen by ₹1,963 and is currently trading around ₹1.56 lakh. Just a few days earlier, on March 13, gold was trading near ₹1.58 lakh per 10 grams, indicating a notable correction in the precious metal’s price.Silver prices have also seen a sharp decline. The price of one kilogram of silver has dropped by ₹7,695 and is currently trading at approximately ₹2.53 lakh per kilogram. Earlier in the week, silver was trading around ₹2.60 lakh per kilogram. The correction has been even more noticeable when looking at the movement over two trading sessions. During this period, gold prices have fallen by ₹3,867 while silver prices have dropped by ₹15,508.The recent decline comes after gold and silver had surged sharply earlier this year due to global uncertainty and geopolitical tensions. On March 12, gold had touched nearly ₹1.60 lakh per 10 grams while silver was trading close to ₹2.68 lakh per kilogram. Since then, both precious metals have experienced selling pressure in the market, leading to a short-term price correction.Analysts say such fluctuations are common in commodity markets where prices are influenced by global economic conditions, currency movements, interest rate expectations and geopolitical developments.
Why Gold Prices Differ Across Indian Cities
Gold prices in India are not uniform across all cities and often vary depending on several local factors. One of the primary reasons is transportation and security costs. Since gold is imported through specific ports, transporting it to various cities involves fuel expenses and high security costs. As the distance from the import center increases, the transportation cost also rises, which can lead to slightly higher gold prices in certain regions.Another factor influencing price variation is purchase volume. In regions such as South India, gold consumption is significantly higher and accounts for nearly 40 percent of the country’s total demand. Jewelers in these areas often buy gold in large quantities, which allows them to receive bulk discounts. These discounts sometimes translate into slightly lower prices for customers.Local jewelry associations also play an important role in determining gold rates in different regions. Almost every state or major city has its own jewelry association that sets the daily gold price based on local demand and supply conditions. For example, organizations like the Madras Jewellers Association determine rates that reflect regional market trends.The cost of gold can also depend on the purchase price of the stock held by jewelers. If a jeweler has inventory that was purchased at lower prices earlier, they may be able to offer customers a slightly cheaper rate compared with someone who bought gold at higher prices recently. These factors together explain why gold prices can differ from one city to another even on the same day.
Silver Corrects Sharply From Record High; Experts Advise Caution
The recent decline in gold and silver prices comes after both metals had reached record highs earlier this year. On December 31, gold was trading around ₹1.33 lakh per 10 grams. It later surged to a historic high of about ₹1.76 lakh on January 29 before starting to decline. Since that peak, gold prices have corrected by nearly ₹19,685.Silver has seen an even steeper correction. At the end of December 2025, silver was priced around ₹2.30 lakh per kilogram. It then surged dramatically to an all-time high of ₹3.86 lakh per kilogram on January 29. Since then, the metal has fallen by approximately ₹1.33 lakh within just over a month, highlighting the extreme volatility in the precious metals market.Market analysts attribute the decline to several key factors. One reason is the reduced expectation of an early interest rate cut in the United States. Recent inflation data suggests that the US Federal Reserve may not reduce interest rates in the immediate future, which has affected investor sentiment in commodity markets.Another reason is the growing preference among investors to hold cash during uncertain economic conditions. Ongoing geopolitical tensions, including the conflict involving Iran and Israel, have increased volatility in global markets. In such situations, investors often shift their portfolios toward liquidity instead of holding large positions in commodities like gold and silver.Rising oil prices and declining stock markets have also contributed to the pressure on precious metals. The geopolitical tensions in the Middle East have pushed energy prices higher, creating additional uncertainty in global financial markets. As investors adjust their portfolios to manage risk, commodities such as gold and silver often experience price fluctuations.Commodity market expert Ajay Kedia believes the decline could continue in the near term as investors book profits in precious metals to compensate for losses in the stock market. According to him, gold prices could fall to around ₹1.50 lakh per 10 grams while silver may decline to about ₹2.50 lakh per kilogram. In this environment, he advises investors to avoid fresh investments in gold and silver for the time being and wait for clearer market signals.
