NEW DELHI — Gold prices in India held steady on Friday while silver showed volatility, as domestic bullion markets tracked global trends and currency movements, traders said.
In major markets, 24-carat gold traded near recent levels, supported by steady investment demand and seasonal buying tied to weddings and upcoming festivals. Silver prices fluctuated more sharply, reflecting both investor sentiment and industrial demand factors.
Indian gold prices move in line with international benchmarks, which are quoted in U.S. dollars. Changes in global rates are quickly reflected in domestic markets. The rupee-dollar exchange rate also plays a crucial role: a weaker rupee raises the cost of imports and pushes prices higher, while a stronger currency can ease pressure.
Import duties and taxes significantly affect retail pricing because India depends heavily on imported gold. Short-term movements are also shaped by inflation data, U.S. Federal Reserve policy decisions, bond yields and geopolitical developments, which influence gold’s appeal as a safe-haven asset.
Bullion dealers reported broadly similar trends across major cities including Delhi, Mumbai, Chennai and Kolkata, with minor variations due to local premiums and making charges.
Analysts said global economic data and currency fluctuations will likely determine near-term direction for precious metals, with silver expected to remain more volatile than gold.
Dealers advised buyers to check city-specific rates before making purchases.