Post Budget 2025: Big Fall In Gold Prices; 22k/100g Slips Rs. 4000; Check Latest Gold Rates

Gold prices in India fell across all purities on February 3, 2025, following last week’s record high. The decline comes after a strong 3% rise over the past week, driven by investor optimism ahead of the Union Budget 2025. However, the latest dip aligns with growing global market uncertainty, particularly after U.S. President Donald Trump announced new tariffs on imports from Canada, Mexico, and China.

Gold Prices in India Today

The price of 22-carat gold dropped by ₹400 per 10 grams, settling at ₹77,050. Meanwhile, 24-carat gold saw a decline of ₹440, bringing the price to ₹84,040 per 10 grams. For larger quantities, 100 grams of 24-carat gold now costs ₹8,40,400 after a ₹4,400 decline, while 100 grams of 22-carat gold is priced at ₹7,70,500, down ₹4,000.

Similarly, 18-carat gold saw a drop, with rates slipping by ₹3,300 per 100 grams to ₹6,30,400.

Silver Prices in India

Silver also experienced a price drop, breaking a six-day stability streak. The cost of silver declined by ₹100 per kilogram, bringing it to ₹99,400. For smaller quantities, 100 grams of silver now costs ₹9,940 after a ₹10 drop.

MCX Gold and Silver Futures

On the Multi Commodity Exchange (MCX), gold futures (April 4, 2025) fell slightly by 0.05%, trading at ₹82,262. Silver futures, set to mature on March 5, 2025, declined by 0.43%, trading at ₹92,817.

International Gold and Silver Prices

Gold prices saw a significant dip in the global market. Spot gold dropped by 0.9% to $2,776.05 per ounce, retreating from Friday’s record high of $2,817.23. U.S. gold futures followed suit, declining 0.9% to $2,810.80.

Silver prices also faced a sharp decline, with spot silver falling 1.4% to $30.87 per ounce.

Market Outlook and Expert Insights

According to the India Bullion and Jewelers Association Ltd., last week’s rally in gold was driven by safe-haven demand following Trump’s tariff threats. The U.S. President imposed a 25% tariff on imports from Canada and Mexico and a 10% levy on Chinese goods. This has raised concerns about global trade tensions and economic slowdown.

Federal Reserve Chair Jerome Powell stated that the U.S. central bank is taking a “wait-and-see” approach regarding the economic impact of new trade policies. Meanwhile, inflation remains low, and real incomes have softened, which could lead to further interest rate reductions this year.

In India, Finance Minister Nirmala Sitharaman announced a reduction in tariff rates for jewelry and related articles from 25% to 20% in the Union Budget 2025. Additionally, India will introduce a new classification for high-purity gold and silver imports from May 1, setting a tax rate of up to 10%.

With ongoing trade uncertainties and potential policy shifts, the gold and silver markets remain volatile, and investors will closely monitor further developments in the global economy.

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