Gold Loses Rs 3,600 In Three Days: Why Gold And Silver Prices Are Falling

Gold and silver prices fell for a third consecutive session on October 14, with gold dropping Rs 1,800 to Rs 1,50,800/10 grams and silver losing Rs 5,000 to Rs 2.21 lakh/kilogram. A stronger rupee and weak global cues pressured domestic bullion rates

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Gold Falls For Third Day, Silver Drops Rs 5,000 As Rupee Gains

Gold prices in Delhi fell for the third consecutive session on Wednesday, October 14, with the precious metal losing Rs 1,800 per 10 grams as the rupee strengthened against the US dollar. Silver prices also extended their decline, falling Rs 5,000 per kilogram as weak international market trends weighed on domestic bullion rates.

According to the All India Sarafa Association, gold of 99.9% purity fell to Rs 1,50,800 per 10 grams, including all taxes, from Rs 1,52,600 on Tuesday. Silver declined to Rs 2,21,000 per kilogram from the previous close of Rs 2,26,000.

The latest fall has taken gold's decline to Rs 3,600 since October 9, while silver has lost Rs 7,500 over the same period. The continued weakness comes as investors watch currency movements, global precious metal prices and upcoming US inflation data for clues about the market's next direction.

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Why Are Gold And Silver Prices Falling?

A stronger rupee and weak international market signals have added pressure on domestic gold prices. Since gold is priced internationally in US dollars, changes in the rupee-dollar exchange rate can affect the cost of importing the metal into India.

The rupee gained 19 paise to close at 95.17 against the dollar, recording its fourth consecutive session of gains. The currency's recovery was supported by Reserve Bank of India (RBI) interventions aimed at easing near-term demand for dollars and limiting speculative exposure in the foreign exchange market.

A stronger rupee makes dollar-priced gold relatively cheaper to import, which can reduce domestic price pressure. However, local gold rates are also influenced by international prices, import costs, taxes and demand in the Indian market.

Saumil Gandhi, senior analyst for commodities at HDFC Securities, told news agency PTI that the domestic gold prices extended their losses on Wednesday, tracking weak global cues and a stronger rupee.

The fall in silver was sharper in absolute terms, with the metal losing Rs 5,000 per kilogram in a single session. International silver prices also remained under pressure, reflecting weakness across the precious metals market.

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Gold Slips Below $4,150 An Ounce

In the international market, spot gold fell by $20.51, or 0.49%, to $4,140.69 per ounce on Wednesday. Silver declined by more than 1% to $58.49 per ounce, approaching a three-month low.

Vedika Narvekar, research analyst for commodities and currencies at Anand Rathi Share and Stock Brokers, said gold had slipped below $4,150 an ounce and touched a fresh weekly low.

She noted that gold had traded within a narrow range for around two weeks. Although the US dollar had eased from an 18-month high, it remained relatively firm, putting further pressure on precious metals.

Investors were also awaiting US inflation figures scheduled for release later on Wednesday. The data could influence expectations about the US Federal Reserve's interest rate decisions and the direction of the dollar, both of which can affect gold prices.

Gold does not offer interest payments, making its appeal sensitive to interest rate expectations and the relative attractiveness of other assets. Changes in the dollar can also influence demand for gold among international buyers.

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Festive Demand Could Support Domestic Gold Prices

Despite the recent decline, some market participants believe domestic demand could help limit further losses.

PTI quoted Pankaj Singh, smallcase manager and founder and principal researcher at SmartWealth.ai, saying festive buying in India and continued purchases by Chinese buyers could provide some support to gold prices.

However, he cautioned that further appreciation in the rupee could restrict gains in domestic bullion rates. Currency movements may therefore remain as important as international gold prices for Indian investors in the near term.

The outlook remains uncertain, with investors balancing potential support from seasonal demand against weak global prices and currency movements. Buyers planning jewellery purchases should also remember that quoted bullion rates may differ from the final retail price, which can include making charges and applicable taxes.

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India's Gem And Jewellery Exports Rise 9.43% In September

While domestic bullion prices declined, India's gem and jewellery exports recorded growth in September 2026, according to the Gem and Jewellery Export Promotion Council (GJEPC).

Exports rose 9.43% year-on-year to $2.95 billion, equivalent to Rs 28,157.55 crore. In September 2025, exports stood at $2.70 billion, or Rs 23,813.91 crore, according to the council's data.

For the first six months of the 2026-27 financial year, from April to September, total exports reached $14.30 billion. This was 3.07% higher than the $13.87 billion recorded during the corresponding period a year earlier.

GJEPC chairman Kirit Bhansali told news agency PTI that the growth was encouraging despite uncertainty in global trade. He highlighted studded gold jewellery as a particularly strong performer during September.

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Studded Gold Jewellery Exports Jump 50.23%

Exports of studded gold jewellery increased 50.23% year-on-year to $812.62 million, or Rs 7,759.73 crore, in September. The figure compared with $540.89 million, or Rs 4,778.36 crore, in the same month last year.

According to Bhansali, as quoted by PTI, improved market access through free trade agreements, lower US tariffs and stronger demand in markets such as Hong Kong, Singapore and France supported the increase.

Exports of plain gold jewellery also rose, climbing 8.76% to $378.03 million, or Rs 3,609.23 crore, from $347.58 million a year earlier. The council attributed some of this improvement to a return to more normal conditions in Dubai.

However, Bhansali said market conditions remained challenging, particularly in the Middle East, which is an important destination for plain gold jewellery exports.

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Diamond And Silver Jewellery Exports Show Mixed Trends

Not all categories recorded growth. Exports of cut and polished diamonds fell 5.44% year-on-year to $1.293 billion in September, compared with $1.368 billion in the same month last year.

In contrast, polished lab-grown diamond exports increased 40.72% to $151.43 million, up from $107.61 million a year earlier.

Silver jewellery exports declined 12.49% to $134.46 million from $153.65 million in September 2025.

The figures point to differing trends across India's jewellery export industry, with studded gold jewellery and lab-grown diamonds registering strong growth while cut and polished diamonds and silver jewellery faced declines.

For the bullion market, the immediate focus remains on international gold prices, the rupee's movement against the dollar and US inflation data. These factors, alongside festive demand, are likely to shape the near-term direction of gold and silver prices in India.

(With inputs from agencies)