Gold prices continued their downward trend in India on June 4 as weakness in global bullion markets and ongoing geopolitical uncertainty weighed on investor sentiment. The decline has pushed 22-carat gold prices below the ₹1.44 lakh mark per 10 grams in several major cities, including the national capital.
The fall in domestic gold rates comes amid fluctuating international market conditions, concerns surrounding global economic growth, and uncertainty over developments in the Middle East. Since precious metals are influenced by both local and global factors, investors are closely monitoring upcoming economic events, including the Reserve Bank of India's monetary policy decision.
Gold has traditionally been viewed as a safe-haven asset during periods of uncertainty. However, recent developments in international markets have created pressure on bullion prices.
Market participants remain cautious due to concerns that global interest rates could stay elevated for a longer period. Higher interest rates typically reduce the attractiveness of non-yielding assets such as gold.
In addition, uncertainty surrounding diplomatic developments and geopolitical tensions in West Asia has influenced investor behavior, leading to fluctuations in precious metal prices.
As a result, international spot gold prices have softened, which has also impacted domestic bullion markets.
The Reserve Bank of India's Monetary Policy Committee (MPC) began its June policy meeting on June 3, with the outcome expected on June 5.
The current repo rate stands at 5.25%. Market experts believe the central bank may maintain the existing rate considering inflation risks, global uncertainties, and ongoing geopolitical developments.
Interest rate decisions often influence gold prices because lower rates generally support bullion demand, while higher rates can make fixed-income investments more attractive.
Investors are therefore closely watching the RBI's policy announcement for further clues about the direction of financial markets.
The decline in prices has been visible across most metropolitan cities.
24-Carat Gold: ₹1,56,360 per 10 grams
22-Carat Gold: ₹1,43,340 per 10 grams
24-Carat Gold: ₹1,56,210 per 10 grams
22-Carat Gold: ₹1,43,190 per 10 grams
24-Carat Gold: ₹1,56,210 per 10 grams
22-Carat Gold: ₹1,43,190 per 10 grams
24-Carat Gold: ₹1,58,170 per 10 grams
22-Carat Gold: ₹1,44,990 per 10 grams
24-Carat Gold: ₹1,56,210 per 10 grams
22-Carat Gold: ₹1,43,190 per 10 grams
24-Carat Gold: ₹1,56,210 per 10 grams
22-Carat Gold: ₹1,43,190 per 10 grams
| City | 22-Carat Gold (Per 10 Grams) | 24-Carat Gold (Per 10 Grams) |
|---|---|---|
| Delhi | ₹1,43,340 | ₹1,56,360 |
| Mumbai | ₹1,43,190 | ₹1,56,210 |
| Ahmedabad | ₹1,43,240 | ₹1,56,260 |
| Chennai | ₹1,44,990 | ₹1,58,170 |
| Kolkata | ₹1,43,190 | ₹1,56,210 |
| Hyderabad | ₹1,43,190 | ₹1,56,210 |
| Jaipur | ₹1,43,340 | ₹1,56,360 |
| Bhopal | ₹1,43,240 | ₹1,56,260 |
| Lucknow | ₹1,43,340 | ₹1,56,360 |
| Chandigarh | ₹1,43,340 | ₹1,56,360 |
Recently, reports surfaced suggesting that the Reserve Bank of India had sold a portion of its gold reserves to protect foreign exchange holdings amid geopolitical tensions.
The central bank, however, dismissed these claims and clarified that its physical gold reserves remain unchanged at 880.52 tonnes.
According to RBI data, gold accounted for approximately 16.85% of India's total foreign exchange reserves as of May 22, 2026.
The clarification helped address market speculation regarding India's reserve management strategy.
The weakness in precious metals was not limited to gold.
Silver prices also declined in the domestic market, reflecting softer global trends.
Domestic Silver Price: ₹2,79,900 per kilogram
International Spot Silver: $74.43 per ounce
Despite the recent correction, silver remains significantly higher than historical averages. Earlier this year, silver prices in India had crossed the ₹4 lakh per kilogram mark, highlighting the metal's strong volatility.
Gold and silver prices are expected to remain sensitive to global developments, including geopolitical events, central bank decisions, inflation trends, and currency movements.
Investors planning to purchase precious metals may continue to monitor the RBI's policy outcome and international market sentiment, both of which could influence the next direction of bullion prices.
Gold and silver prices fluctuate frequently based on market conditions. Investors should verify the latest rates with local jewellers or authorized bullion dealers before making any purchase or investment decision.
