Gold and silver prices in India declined on Wednesday, July 8, mirroring weakness in international markets. The drop was primarily caused by a stronger US dollar and rising Treasury yields, which weighed on investor sentiment.
Gold and silver prices edged lower in India on Wednesday, July 8, tracking weakness in international bullion markets as a stronger US dollar and rising Treasury yields weighed on investor sentiment. The decline comes despite persistent geopolitical tensions, with global markets closely watching developments in the Middle East and expectations around the US Federal Reserve's next policy move.
According to the latest retail rates, 24-carat gold and 22-carat gold witnessed a marginal decline across major Indian cities, while silver prices also softened. The correction follows a drop in international spot gold prices, which fell about 0.75% in early trade. Analysts attributed the weakness to a firmer US dollar and expectations that higher energy prices could keep inflation elevated, reducing the likelihood of an early interest-rate cut by the Federal Reserve.
City-wise Gold & Silver Rates (July 8)
| City | 24K Gold (Rs/10g) | 22K Gold (Rs/10g) | Silver (Rs/kg) |
| Delhi | Rs 1,41,600 | Rs 1,29,800 | Rs 2,30,000 |
| Mumbai | Rs 1,41,450 | Rs 1,29,650 | Rs 2,30,000 |
| Kolkata | Rs 1,41,450 | Rs 1,29,650 | Rs 2,30,000 |
| Chennai | Rs 1,42,050 | Rs 1,30,200 | Rs 2,40,000 |
| Bengaluru | Rs 1,41,450 | Rs 1,29,650 | Rs 2,30,000 |
| Hyderabad | Rs 1,41,450 | Rs 1,29,650 | Rs 2,40,000 |
In the domestic market, gold continues to remain near historically elevated levels despite the day's decline. Jewellers say demand is likely to stay steady as consumers prepare for the upcoming festive and wedding season, although high prices may encourage buyers to make purchases in smaller quantities.
Silver prices also eased alongside gold, reflecting the broader weakness in precious metals. Market experts believe the direction of bullion prices over the coming weeks will depend on the US Federal Reserve's policy signals, movement in the dollar index, crude oil prices and geopolitical developments.
Investors are also awaiting the release of the Federal Open Market Committee (FOMC) meeting minutes for clues on future interest-rate decisions. Higher interest rates generally reduce the appeal of non-yielding assets such as gold, while any indication of policy easing could support bullion prices.
For retail buyers, experts recommend tracking daily price movements before making large jewellery purchases, as gold rates continue to fluctuate in response to global economic data, currency movements and international geopolitical events. While today's decline offers slight relief to buyers, precious metal prices remain significantly higher than year-ago levels, keeping gold an important long-term hedge against inflation and economic uncertainty.
