Gold Prices Drop to 10-Month Low, Silver Slides Amid Global Selloff and Inflation Concerns

Precious metals experienced a sharp decline in domestic and international markets, with gold hitting a 10-month low of Rs 1.42 lakh per 10 grams. The correction was driven by rising energy prices, inflation concerns, and expectations of sustained higher US interest rates.

Gold and silver prices declined sharply in domestic and overseas markets, extending losses for the second straight session amid a global selloff in precious metals. Market participants pointed to rising energy prices, inflation concerns, and expectations of higher US interest rates as the primary drivers behind the correction.

In the national capital, gold prices of 99.9 per cent purity dropped by Rs 3,200 to a 10-month low of Rs 1,42,000 per 10 grams, inclusive of all taxes. This marks a decrease from the previous close of Rs 1,45,200 per 10 grams. The precious metal was last quoted at similar levels on December 26, 2025.

Silver prices followed a similar downward trajectory, declining by Rs 4,200 to settle at Rs 1,86,000 per kilogram, inclusive of all taxes, down from the previous close of Rs 1,90,200 per kg. The white metal was last traded near these levels on December 8, 2025.

In overseas markets, spot gold plunged by USD 145.84, or nearly 4 per cent, to close at USD 3,875.55 per ounce on Friday, hitting its lowest level in over a year. Spot silver also tumbled USD 3.04, or 6 per cent, to settle at USD 49.12 per ounce.

Industry experts noted that hawkish commentary from the US Federal Reserve and higher oil prices have revived expectations of monetary tightening. Rahul Khetawat, Senior Vice President and Fund Manager at 360 ONE Asset, stated that these developments tempered expectations of monetary easing and placed downward pressure on precious metals.

Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd., added that an artificial intelligence-led equity rout added forced liquidation and cash-raising pressure on markets. He also noted that silver’s industrial exposure amplified its fall, while speculative short positions had built up ahead of US mid-term elections.

"The sharp correction in gold and silver prices highlights how broader macroeconomic shifts, including energy inflation and monetary policy expectations, directly impact commodity markets. For businesses and investors dealing with capital allocation and asset management, such volatility underlines the importance of maintaining balanced liquidity and closely monitoring global interest rate trajectories rather than relying on short-term price movements." — Dr. Shishir Gupta, Founder & CEO, StartupLanes