Mumbai: Gold and silver prices witnessed a drastic fall on March 18, 2025, leaving investors in shock. The decline was triggered by global economic uncertainties, fluctuating currency values, and shifting demand-supply dynamics.
Also Read: Gold Prices Soar on March 17, 2025 – Exciting Market Rally!
Gold Prices Across Major Indian Cities
Gold prices experienced a sharp decline in major Indian cities. The decrease was driven by weakening international gold rates and a stronger Indian Rupee.
| City | 22K Gold (per 10 grams) | 24K Gold (per 10 grams) |
|---|---|---|
| Delhi | ₹82,263 | ₹89,723 |
| Mumbai | ₹82,090 | ₹89,550 |
| Chennai | ₹82,090 | ₹89,550 |
| Kolkata | ₹82,090 | ₹89,550 |
Delhi recorded 22K gold at ₹82,263 per 10 grams and 24K at ₹89,723 per 10 grams. Mumbai, Chennai, and Kolkata reported a price of ₹82,090 for 22K gold and ₹89,550 for 24K gold.
Silver Prices Across Major Indian Cities
Silver prices also dropped significantly due to declining industrial demand and weak international cues.
| City | Silver Price (per kg) |
| Delhi | ₹1,05,900 |
| Mumbai | ₹1,05,200 |
| Chennai | ₹1,14,500 |
| Kolkata | ₹1,06,700 |
Delhi’s silver price stood at ₹1,05,900 per kg. Mumbai recorded ₹1,05,200 per kg, Chennai at ₹1,14,500 per kg, and Kolkata at ₹1,06,700 per kg.
Factors Behind the Sudden Price Drop
Gold and silver prices are affected by multiple economic and geopolitical factors. The recent crash can be attributed to:
1. Weak Global Demand
Global demand for gold has declined due to rising interest rates in the US. Investors are shifting to safer government bonds, reducing gold’s appeal as a hedge against inflation.
2. Strengthening of the Indian Rupee
The Indian Rupee gained strength against the US Dollar, making gold imports cheaper. This led to a lower domestic price despite fluctuating international rates.
3. US Federal Reserve Policy Impact
The US Federal Reserve hinted at possible rate hikes, discouraging investments in non-yielding assets like gold and silver. As a result, precious metals lost their shine for investors.
4. Stock Market Surge
A bullish trend in stock markets pulled investors away from gold and silver. With equity markets offering higher returns, many chose to invest in stocks instead.
5. Slowing Industrial Demand for Silver
Silver is widely used in electronics, solar panels, and industrial applications. A decline in demand from manufacturing industries led to a reduction in silver prices.
Recent Trends and Market Outlook
Over the past week, gold prices have displayed volatility. On March 12, 2025, 24K gold was priced at ₹87,653 per 10 grams in Delhi. It surged to ₹89,843 on March 17 but plummeted to ₹89,723 on March 18.
Silver prices also saw fluctuations. On March 12, silver stood at ₹1,01,000 per kg in Delhi, peaking at ₹1,06,100 on March 17 before dropping to ₹1,05,900 on March 18.
Will Gold and Silver Prices Recover?
Market analysts predict that gold and silver prices could remain volatile in the coming weeks. If global inflation continues to ease and central banks maintain high interest rates, further declines may be expected. However, any geopolitical tension or economic downturn could push prices up as investors seek safe-haven assets.
Is This the Right Time to Invest?
For investors, this price dip presents an opportunity to buy gold and silver at lower rates. Experts suggest that:
- Long-term investors can consider buying gold as a hedge against inflation.
- Silver may see price recovery if industrial demand picks up.
- Short-term traders should remain cautious due to market volatility.
Conclusion
The drastic fall in gold and silver prices on March 18, 2025, was driven by global market trends, currency fluctuations, and a shift in investor sentiment. While prices may remain uncertain in the short term, long-term investors can use this dip as an opportunity. Staying updated with market trends and economic policies will be crucial for making informed investment decisions.
For the latest updates on gold and silver prices, visit Upstox and the official BSE website.
