Gold and silver prices witnessed sharp fluctuations on July 11 as easing Middle East tensions and profit-booking pressured international bullion markets. However, strong local demand kept domestic gold prices near record levels.
Key Highlights
- Comex gold fell by $11.90 to $4,128.90 per ounce.
- Silver slipped by $0.448 to $60.300 per ounce.
- Domestic 24-carat gold reached ₹1,44,960 per 10 grams in Delhi.
- Silver was trading around ₹2,40,100 per kilogram.
- Peace-talk hopes between the US and Iran reduced safe-haven demand.
- Local jewellery and wedding-season demand supported Indian prices.
Gold Prices Remain Volatile as Global Rates Fall but Domestic Demand Stays Strong
Gold and silver prices witnessed mixed trends on July 11, with international bullion markets trading lower while domestic prices remained close to record levels due to strong local demand.
In the international market, Comex gold declined by $11.90 and was trading at around $4,128.90 per ounce during the morning session. Silver also remained under pressure, falling by $0.448 to approximately $60.300 per ounce.
Market experts attributed the decline to profit-booking by global investors and signs of easing geopolitical tension in the Middle East. Reports suggesting possible peace talks between the United States and Iran provided some relief to financial markets and reduced immediate demand for safe-haven assets such as gold.
Gold generally attracts investors during periods of war, political uncertainty and economic instability. Therefore, any improvement in geopolitical conditions can trigger selling as investors move towards riskier assets.
Stability in crude oil prices also influenced bullion sentiment. Oil prices had risen sharply amid concerns over supply disruptions, but indications of diplomatic progress helped control the upward movement. Changes in the US bond market also affected investor interest in precious metals.
Despite weakness in global markets, gold remained expensive in Indian cities. The price of 24-carat gold in Delhi and Lucknow stood at ₹1,44,960 per 10 grams, while 22-carat gold was priced at ₹1,32,910.
In Mumbai and Kolkata, 24-carat gold was available at around ₹1,44,830 per 10 grams, while 22-carat gold stood at ₹1,32,760. Ahmedabad recorded a price of ₹1,44,880 for 24-carat gold and ₹1,32,810 for 22-carat gold.
Silver was trading at approximately ₹2,40,100 per kilogram in the domestic market. Industrial demand, investment buying and wedding-related purchases continued to support silver prices.
The difference between falling international prices and high domestic rates highlights the role of local demand, import costs, currency movements and taxes. Gold prices in India may also vary between cities because of transportation costs and local market conditions.
Consumers planning to purchase jewellery should compare rates from local jewellers and also check making charges, taxes and purity before completing a transaction.
