Gold Becomes Cheaper Than Ever—What’s Behind the Drop?

New Delhi(The Uttam Hindu): Amid a continued downturn in the stock market, there’s some relief for gold and silver buyers as prices have declined for the fifth consecutive day on Tuesday. Spot market rates for gold have dropped again, making the yellow metal more affordable for consumers. However, global uncertainty is driving up prices in the futures market.

In Delhi’s bullion market, the price of 24-carat gold fell by ₹110 per 10 grams, now trading at ₹99,970. Meanwhile, 22-carat gold is down ₹100 and stands at ₹91,650 per 10 grams. Silver prices remained unchanged.

Similar trends were seen in other major cities across India. In Mumbai, prices dipped, and in Lucknow, 24-carat gold is also down ₹110 at ₹99,970 per 10 grams. Chennai recorded gold at ₹99,820 per 10 grams.

While spot market prices are declining, futures contracts are seeing a spike due to ongoing global tensions, especially uncertainties surrounding US trade deals. On the MCX, the gold contract expiring on August 5, 2025, rose by ₹204 to ₹97,749 per 10 grams. Similarly, the silver contract expiring on September 5 rose by ₹207 to ₹1,13,260 per kilogram.

According to the All India Sarafa Association, gold had closed ₹500 lower on Monday at ₹98,020 per 10 grams. Silver had also dropped ₹1,000 to ₹1,13,000 per kilogram. Meanwhile, international markets saw relatively stable prices for both gold and silver.