Gold Prices Dip in India Amid Global Surge: What’s Driving the Trend?
Unexpectedly, despite a strong increase in the value of the yellow metal on international markets, gold prices in India have slightly declined. According to market reports, 24-carat gold prices in India decreased slightly on July 22, 2025, from ₹10 to ₹99,340 per 10 grams, while silver prices decreased by ₹100 to ₹1,15,001 per kilogram. Both consumers and investors are curious about this domestic drop, which contrasts with global gold prices rising to $3,398.82 per troy ounce. Why is one of the biggest gold markets in the world, India, defying the global trend? Let’s examine the elements influencing this fascinating market dynamic and what it implies for you.
This price correction is largely the result of recent policy decisions made by the Indian government. In an effort to reduce smuggling and lower the price of gold, Finance Minister Nirmala Sitharaman announced the Union Budget 2024–25, which reduced import duties from 15% to 6%. Demand has been boosted by this cut, which has directly decreased domestic prices by ₹5,000–6,000 per 10 grams, particularly in advance of the holiday season. However, this move has also led to a unique scenario where local costs remain subdued despite global gold prices soaring, driven by geopolitical tensions and a weakening U.S. dollar. Because of the rupee’s modest increase versus the dollar, domestic prices are further muted, making gold and silver more affordable for Indian consumers.
Gold’s appeal as a safe-haven asset is growing on a global scale. International gold prices have increased 41.87% year over year due to rising Middle East tensions and uncertainty surrounding U.S. monetary policy under President Donald Trump’s tariff-heavy agenda. Global prices are under additional pressure as central banks, especially those in China and Russia, continue to increase their gold reserves. According to the World Gold Council, the Indian market is going through a seasonal slowdown following the wedding season, with jewelry demand decreasing in June and July. The decline in domestic prices has been exacerbated by this decreased demand as well as investor profit-taking.
In India, silver, which frequently follows the path of gold, is also suffering. Its decline is a result of cautious investor sentiment and muted industrial demand, especially in the electronics and solar energy sectors. Experts, however, are still upbeat about silver’s prospects, pointing to its 13-year high of $38.84 an ounce globally as a sign of potential future gains. The current price correction offers Indian investors a fantastic opportunity. Due to the festive demand during Dhanteras and Diwali, analysts predict that gold prices could rise back to ₹1,02,000 per 10 grams by the end of the year. Forecasts indicate that silver could also see a breakout, reaching ₹1,20,000 per kilogram.
Silver, which often follows gold’s path, is also suffering in India. Its decline is due to muted industrial demand, particularly in the electronics and solar energy sectors, and cautious investor sentiment. However, analysts remain optimistic about silver’s future, citing its 13-year high of $38.84 an ounce globally as evidence of possible future gains. Indian investors have a great opportunity as a result of the recent price correction. Analysts estimate that by the end of the year, gold prices may return to ₹1,02,000 per 10 grams due to the festive demand during Dhanteras and Diwali. According to forecasts, silver may also experience a surge, rising to ₹1,20,000 per kilogram.
