Gold and silver prices experienced significant declines in the national capital on Friday, influenced by a strengthening US dollar and heavy profit-taking by investors. Silver prices fell by Rs 21,600 to Rs 2.75 lakh per kilogram, while gold dropped by Rs 3,200 to Rs 1.62 lakh per 10 grams.
According to the All India Sarafa Association, the price of gold with 99.9 percent purity decreased by Rs 3,200, or 1.93 percent, reaching Rs 1,62,800 per 10 grams, inclusive of taxes. In the previous session, gold closed at Rs 1,66,000 per 10 grams.
Similarly, silver nosedived by Rs 21,600, or 7.3 percent, settling at Rs 2,75,000 per kg, also inclusive of taxes, down from Rs 2,96,600 per kg in the prior session.
“Precious metals faced substantial selling pressure on Friday. Ongoing concerns regarding elevated inflation—driven by increased energy prices and persistent supply chain disruptions related to tensions between the US and Iran—have bolstered the case for more restrictive monetary policy,” remarked Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
This situation has prompted investors to favor the dollar and US Treasury bond yields, diminishing the attractiveness of gold, he added.
The sharp drop in domestic prices corresponded with weakness in international markets, where spot gold fell by USD 104, or 2.24 percent, to USD 4,548.46 per ounce, while silver decreased by USD 5.26, or 6.31 percent, to USD 78.21 per ounce.
Jateen Trivedi, Vice President of Research – Commodity and Currency at LKP Securities, noted, “Gold prices faced downward pressure as the metal corrected sharply, influenced by rising crude oil prices and a stronger dollar index, which negatively impacted bullion sentiment.”
He also pointed out that profit-taking emerged following the substantial rallies and elevated price levels observed in recent sessions.
Trivedi emphasized that market participants will keep a close watch on updates from the upcoming US-China meetings, former President Trump’s policy stance upon returning to the US, and ongoing geopolitical tensions involving the US, Israel, and Iran.
The article was published on May 15, 2026.
