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Gold prices continued their upward journey for the second straight day on Tuesday, while silver prices witnessed another decline amid weak industrial demand and soft global trends. The latest movement in bullion prices comes as global investors closely monitor geopolitical developments, US interest rate signals, and commodity market trends.

The recent easing of tensions between the United States and Iran has improved buying sentiment in the precious metals market, offering support to gold prices. At the same time, silver remained under pressure due to slowing industrial demand and weakness in international commodity markets.

Over the past two trading sessions, 24-carat gold prices have climbed by ₹830 per 10 grams, while 22-carat gold has become costlier by ₹760. On Tuesday alone, gold prices in Delhi rose by ₹10 across both major purity categories.

Meanwhile, silver prices have fallen for the second consecutive day after witnessing a sharp rally earlier this week. In the last two days, silver has become cheaper by ₹5,100 per kilogram in major Indian cities.

Here is a detailed look at the latest gold and silver prices across India and the factors influencing the bullion market.

Latest Gold Rates in Major Indian Cities

Gold prices vary slightly across cities due to local taxes, transportation charges, and jeweller margins. Below are the latest rates for 18-carat, 22-carat, and 24-carat gold per 10 grams in ten major Indian cities.

Among the listed cities, Chennai currently has the highest gold prices across all purity categories.

Silver Prices Continue to Decline

Silver prices have failed to maintain their recent rally. After witnessing a sharp increase of ₹10,000 per kilogram on May 18, the white metal has now fallen for two consecutive days.

In Delhi, silver prices dropped by another ₹100 on Tuesday, bringing the price down to ₹2,84,900 per kilogram.

Silver Prices in Major Metro Cities

• Delhi: ₹2,84,900 per kg
• Mumbai: ₹2,84,900 per kg
• Kolkata: ₹2,84,900 per kg
• Chennai: ₹2,99,900 per kg

Among India’s major metro cities, Chennai continues to report the highest silver prices.

Why Are Gold Prices Rising?

Analysts believe gold prices are receiving support from improving global investor sentiment and ongoing uncertainty in financial markets.

Although tensions between the US and Iran appear to be easing slightly, investors are still preferring safe-haven assets like gold due to concerns surrounding global economic growth, inflation, and interest rates.

Additionally, central bank buying and fluctuating currency movements have also helped support gold demand internationally.

Gold is traditionally considered a hedge against inflation and geopolitical uncertainty, which keeps investor interest strong during volatile market conditions.

Why Is Silver Falling Despite Gold Rising?

Unlike gold, silver has a significant industrial usage component. Demand for silver often depends heavily on manufacturing activity, electronics production, solar panel demand, and industrial growth.

Market experts suggest that weakening industrial demand and soft global commodity sentiment have weighed on silver prices recently.

The divergence between gold and silver performance highlights the difference in their demand drivers. While gold benefits mainly from safe-haven buying, silver prices are influenced by both investment and industrial consumption trends.

What Should Investors Watch Next?

Market participants are now closely tracking the minutes of the upcoming Federal Open Market Committee (FOMC) meeting in the United States.

Investors are trying to assess the future direction of US interest rates and how global monetary policy decisions may impact bullion prices in the coming weeks.

Commodity market experts believe gold and silver could remain volatile due to several international developments, including:

• Changes in global interest rates
• Crude oil price fluctuations
• Geopolitical tensions in West Asia
• US dollar movement
• Inflation trends in major economies

According to commodity analysts, any signal of delayed rate cuts by the US Federal Reserve could influence both gold and silver prices significantly.

Should Investors Increase Gold Allocation?

Financial planners often recommend keeping a limited portion of an investment portfolio in gold to improve diversification and hedge against uncertainty.

However, experts advise investors not to make decisions based solely on short-term price movements. Instead, investment choices should align with long-term financial goals, risk appetite, and asset allocation strategy.

Gold can act as a stability tool during periods of market volatility, but investors should always evaluate overall market conditions before increasing exposure to bullion assets.

Disclaimer: Commodity prices are subject to market risks and may change rapidly due to global economic and geopolitical developments. Investors should consult certified financial advisors before making investment decisions.