Gold prices witnessed a significant decline this week, marking the biggest drop of 2025 so far. After touching record highs earlier this year, gold has begun a steep downward trend, much to the dismay of investors and relief of retail buyers.
Gold Had Crossed ₹1 Lakh in April
On April 22, gold reached its all-time high, with 24-carat gold crossing ₹1,00,000 per 10 grams in physical markets. On the Multi Commodity Exchange (MCX), it had touched ₹99,358 per 10 grams. However, since then, the price has been consistently sliding.
Why Are Gold Prices Falling?
The recent fall in gold prices is largely attributed to international market trends. Earlier, geopolitical tensions and tariff war fears (notably during the Trump-era trade tensions) had boosted investor demand for gold as a safe-haven asset. As fears subside and equity markets rebound, investors are moving away from gold, causing a drop in demand and price.
City-wise Gold Rates as of May 19, 2025
| City | 24-Carat Gold (₹/10g) | 22-Carat Gold (₹/10g) |
|---|---|---|
| Delhi | ₹95,280 | ₹87,350 |
| Mumbai | ₹95,130 | ₹87,200 |
| Kolkata | ₹95,130 | ₹87,200 |
| Chennai | ₹95,130 | ₹87,200 |
| Hyderabad | ₹95,130 | ₹87,200 |
| Jaipur | ₹95,280 | ₹87,350 |
| Lucknow | ₹95,280 | ₹87,350 |
| Chandigarh | ₹95,280 | ₹87,350 |
| Bhopal | ₹95,180 | ₹87,250 |
| Ahmedabad | ₹95,180 | ₹87,250 |
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Investors: The decline comes as a warning for short-term traders, especially those who entered near peak prices. Analysts suggest monitoring international developments and central bank cues closely.
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Consumers: For buyers planning weddings or gold investments, this is an ideal opportunity to make purchases at lower rates.
