Gold prices in India fell on Wednesday, February 12, 2025, due to weakness in the global market. In the national capital, gold prices fell by ₹340, reducing the price of 24-carat gold to ₹87,960 per 10 grams, according to the All India Sarafa Association.
22-Carat and 24-Carat Gold Prices
24-Carat Gold: ₹87,960 per 10 grams (down by ₹340)
22-Carat Gold: ₹80,280 per 10 grams (down by ₹320)
The fall comes after the weakening of gold prices in the global market due to economic and monetary policy cues from the United States.
Silver Prices Creep Upward
While gold fell, silver prices rose by ₹600, trading at ₹97,200 per kg in Delhi. Demand for silver remained firm as investors were interested in the metal during global economic instability.
Gold Futures Fall on MCX
Gold futures fell in India. On the Multi Commodity Exchange (MCX), gold April contracts fell by ₹659, or 0.77%, to ₹84,864 per 10 grams. The trend of futures suggests short-term selling pressure on the yellow metal.
Global Market Trends
In the overseas market, gold prices also fell. COMEX gold futures fell by $26 per ounce to $2,906.60 per ounce. The price fall was attributed to:
U.S. Federal Reserve Policy: Recent Federal Reserve Chairman Jerome Powell testimony showed that the central bank is not keen on cutting interest rates, supporting the U.S. dollar and bond yields and putting pressure on gold prices.
U.S. Treasury Yields: A rise in yields made non-yielding assets such as gold less desirable for investors.
Upcoming U.S. CPI Data: The later today release of Consumer Price Index (CPI) inflation data will be keenly observed as it may have implications for future Federal Reserve rate actions.
Expert View on Gold Price Action
Jateen Trivedi, VP Research Analyst – LKP Securities:
“Gold took a breather after its good rally. With COMEX and MCX prices weakening, we see some short-term selling pressure. Investors are waiting for inflation data for further cues.”
Saumil Gandhi, Senior Analyst – HDFC Securities:
“Gold prices are under pressure as the Fed signaled no urgency in cutting interest rates. Higher U.S. Treasury yields have made gold unattractive in the short term.”
Gold Price Outlook
If inflation data in the U.S. shows a cooling trend, it will be in sync with expectations of a rate cut, which will be positive for gold prices.
But if inflation data is robust, the Federal Reserve may keep rates higher for longer, which will keep gold prices under pressure.
The decline in gold prices is a reaction to the Federal Reserve’s cautious approach towards rate cuts and rising bond yields. Though global factors are keeping gold under pressure, the upcoming inflation data will be crucial in determining its future course. Meanwhile, silver prices have been steadfast, creeping higher despite gold’s decline. Investors will continue to watch economic data and policy statements for further cues on precious metals.