Silver futures for the same date also declined, falling by ₹452 (0.47%) to trade at ₹96,580 per kg.
Spot 22K gold in India decreased by ₹570, now at ₹72,990 per 10 grams, while silver dropped by ₹2,200, trading at ₹1,01,900 in major metro cities.
This dip comes despite ongoing support from geopolitical tensions.
The Middle East crisis and US-Israel negotiations are intensifying, boosting safe-haven demand for gold. Additionally, rising opinion poll volatility in the US presidential race is seen as adding an unpredictable layer to global markets.
Globally, spot gold dropped 0.4% to $2,725.73 per ounce after hitting a record high of $2,758.37 earlier this week, though it remains on track for its third consecutive weekly gain.
Renisha Chainani, Head of Research at Augmont – Gold For All, noted, “With overbought conditions in the gold market, we’re seeing some profit-taking, especially as US Treasury yields rise.”
Despite short-term corrections, Chainani sees steady gold gains as international instability supports prices. “We could see gold heading towards the $2,800 per ounce mark, which translates to around ₹80,000 per 10 grams,” she added.
Analysts, including Jateen Trivedi from LKP Securities, also underline the impact of US jobless claims data due next week, which could shape gold’s performance.
Trivedi explains that lower-than-expected claims may indicate a resilient US economy, possibly adding temporary pressure on gold prices.
However, any substantial dip could reinforce support around ₹77,000 to ₹77,500 per 10 grams.
Silver has mirrored gold’s movements, benefiting from both its monetary and industrial roles.
Paul Wong of Sprott Asset Management highlighted silver’s dual appeal, with industrial growth, especially in photovoltaics, providing additional support.
Investment outlook
For Indian investors, gold remains an attractive hedge amid current market volatility.
Analysts forecast a near-term continuation of gold’s upward trend if geopolitical risks persist.
Given the elevated sentiment and historical resilience during crises, both gold and silver are likely to see buyer interest on dips, especially if prices approach critical support zones.