Gold prices in India continued their downward trend on July 25, with 24-karat gold slipping below the ₹1.45 lakh per gram mark in many cities. This decline mirrors a broader weakness observed in international bullion markets, despite recent increases in domestic import duties.
Global Factors Drive Domestic Gold Price Drop
The primary driver behind the correction in gold prices is the subdued sentiment in international markets. Easing geopolitical tensions globally have reduced demand for gold as a safe-haven asset. Additionally, cautious investor sentiment ahead of key global economic data releases and anticipation regarding the US Federal Reserve's interest rate trajectory are also weighing on precious metals.
On the Multi Commodity Exchange (MCX), gold futures saw a drop of approximately 0.36%, settling around ₹1,42,300 per 10 grams. Silver futures also experienced a similar decline of 0.36%.
Retail Gold Rates Across India
In the retail market, 24-karat gold was priced at ₹14,433 per gram, while 22-karat gold stood at ₹13,230 per gram, and 18-karat gold was available at ₹10,825 per gram, according to market data. Compared to July 23, 24K gold has seen a decline of ₹185 per gram, with 22K and 18K gold falling by ₹170 and ₹139 per gram, respectively.
City-Wise Gold Prices (July 25, 2026)
- Delhi: 24K at ₹14,448/gram; 22K at ₹13,245/gram
- Mumbai, Kolkata, Bengaluru, Hyderabad, Pune: 24K at ₹14,433/gram; 22K at ₹13,230/gram
- Ahmedabad: Noted slightly higher at ₹14,656/gram for 24K
- Chennai: Recorded higher 18K prices compared to several other cities
Understanding Gold Purity: 24K vs. 22K
Gold in India is commonly traded in two main purities:
- 24-Karat Gold: This is considered the purest form, boasting 99.9% purity. It is primarily favored by investors who purchase gold as a store of value.
- 22-Karat Gold: This purity contains 91.6% gold, with the remainder composed of alloy metals. The addition of alloys enhances its strength and durability, making it ideal for crafting jewelry.
Outlook for Gold Investors
Despite the recent government decision to increase the basic customs duty on gold and silver from 5% to 10%, the impact has been overshadowed by softer international bullion prices. Analysts suggest that global cues remain the dominant factor influencing domestic rates.
Investors should closely monitor upcoming US inflation data, decisions from the US Federal Reserve regarding interest rates, movements in the US dollar, and evolving geopolitical events. These factors are expected to continue influencing demand for safe-haven assets like gold. While short-term volatility may persist, gold remains a valuable long-term portfolio diversifier and an effective hedge against inflation, particularly during periods of economic uncertainty.