Gold rate today: Yellow metal prices drop over 1% on weekly basis, first fall in nine weeks

Gold prices declined more than 1% this week, marking the first loss in the past nine weeks. Gold of 24K variety traded at ₹86,620 per 10 grams in major Indian cities on Saturday, down by ₹1,150 over the last week. The 22K variety traded at ₹79,400 per 10 grams, down by ₹1,050 on a weekly basis.

From December 7, 2024, to February 22, 2025, bull phase the metal appreciated nearly 12%, or by over ₹10,000 per 10 grams.

Gold hits fresh lifetime high this week before taking a breather

Gold prices hit a fresh lifetime high this week before giving up gains in the past three days. The metal started the week on a firm note and advanced ₹100 on Monday amid positive global trends. Gold added another ₹220 on Tuesday to hit an all-time high of ₹88,090 per 10 grams (24K) as the metal scaled new record levels in global markets. The 22K gold hit an all-time high of ₹80,750 per 10 grams in Mumbai and other major cities.

The metal attracted profit booking at record levels on Wednesday dropping by ₹270 to ₹87,820 per 10 grams. Gold continued to decline in the next two sessions as record-high prices hit retail demand. The metal fell by ₹440 on Thursday and by ₹540 on Friday to trade at ₹86,840 per 10 grams, a level not seen since February 17.

In global markets, gold dropped more than 2% this week to trade below $2,900 an ounce on Friday. Gold prices hit an all-time high of 2,954 an ounce on Tuesday before giving up gains at the close on the same day. The precious metal dropped more than 1% on Thursday and another 0.34% on Friday to trade at $2,863.46 an ounce in spot markets.

Silver tanks over 3% on weak demand concerns

Silver prices plunged by more than 3% or ₹3,500 per kg this week. Silver prices traded at ₹97,000 per kg on Saturday against ₹100,500 per kg last week. Silver started the week with gains, rising by ₹500 on Monday. After staying firm at ₹1,01,000 per kg on Tuesday, the metal dropped by ₹3,000 on Wednesday on weak demand concerns and a renewed push for fossil fuels by the US.

The white metal plunged by ₹1,000 on Friday to trade at ₹97,000 per kg in major Indian cities.

Dollar rebound, profit taking amid trade uncertainty hit gold

The US dollar rebounded this week to 107 levels after the data showed a resilient US economy and chances of a spike in inflation due to President Donald Trump’s policies. The cues tinkered with rate cut hopes with experts suggesting that the Fed may keep rates steady to keep inflation under check.

The US dollar traded near multi-week highs of 107.39 on Friday after Trump issued new tariff threats against European trade partners and China. A soaring dollar hit the appeal of non-yielding gold even as investors awaited the release of the US PCI index due on Friday night for more cues into Fed rate policy.

As trade war concerns fuelled the US dollar, investors preferred to book profits even as US bond yields remained stable. The profit-taking also hit expectations of gold scaling at $3,000 per ounce level soon.

Weak domestic demand hit prices

Weak domestic demand also hit gold prices on Friday. Marriage season demand is expected to wane because of fewer auspicious days in March. According to the Hindu calendar, there are just five auspicious days for marriage in March 2025.