Gold and Silver Prices Fall Sharply: Is Sawan the Best Time to Buy Precious Metals?

If you're planning to buy gold or silver, this might just be the ideal time. Prices of both precious metals have witnessed a significant dip amid global economic developments and local market trends. In the Delhi bullion market, both gold and silver saw a steep fall on Thursday, opening up an opportunity for buyers during the holy month of Sawan.

📉 Gold and Silver Prices Drop From Recent Highs

Due to weak global cues and profit-booking by stockists, 10 grams of gold dropped by ₹1,400, settling at ₹99,620. Meanwhile, silver prices plunged by a whopping ₹3,000, now trading at ₹1,15,000 per kilogram.

On Wednesday, gold of 99.9% purity closed at ₹1,01,020 per 10 grams. By Thursday, it had slipped to ₹99,620. Similarly, 99.5% pure gold dropped by ₹1,200 to reach ₹99,250 per 10 grams.

🧐 Why Are Gold and Silver Prices Falling?

Several factors are contributing to this dip:

• Profit Booking by Investors: With the announcement of a new trade agreement between the US, Japan, and the Philippines, many investors started pulling out their profits, leading to a decline in demand for gold.

• More Global Trade Deals Ahead: If the US also enters into agreements with Europe and China, gold's appeal as a safe-haven asset could reduce further.

• Shift Towards Riskier Assets: According to Saumil Gandhi of HDFC Securities, global optimism around trade deals is prompting investors to move away from safe-haven investments like gold and into riskier assets like equities.

• Stabilizing Trade Environment: Jatin Trivedi from LKP Securities added that gold prices were on an upward trend until last month due to uncertainty around global trade, but as clarity emerges, gold is losing some of its shine.

🌍 Global Market Impact

The international market also reflected this decline:

• Gold dropped by $24.35 (0.72%), now trading at $3,362.88 per ounce

• Silver fell by 0.53%, now priced at $39.05 per ounce

These global cues have had a direct influence on the Indian bullion market.

🔮 What’s Next for Gold and Silver Prices?

According to Manish Sharma of Anand Rathi, the upcoming focus will be on:

• US weekly jobless claims data

• S&P Global PMI report

• Interest rate decisions by the Federal Reserve and European Central Bank next week

These events could trigger further fluctuations in the prices of gold and silver. Any sign of economic strength or aggressive rate hikes may suppress gold prices further.

💰 Is This the Best Time to Buy?

With prices dipping and global cues pointing to more volatility ahead, this Sawan season could be a golden opportunity for buyers—especially those looking to invest for the long term or planning festive purchases.

However, investors are advised to:

• Monitor global developments and central bank decisions

• Check local market prices regularly

• Diversify their investments to manage risk

📝 Conclusion

The sharp decline in gold and silver prices amid global trade developments and economic optimism presents a unique buying opportunity. While prices may remain volatile in the coming days, the current dip could be a good entry point for both jewelry buyers and investors.

Stay informed, time your purchases smartly, and consider this Sawan month a golden window to add some sparkle to your portfolio.