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Gold prices witnessed a decline across several Indian cities on Friday, July 24, ending the recent upward trend in the bullion market. The fall comes amid softer international gold prices and growing expectations that the U.S. Federal Reserve could tighten monetary policy later this year, reducing the appeal of precious metals.

According to market data, 24-carat gold prices eased in key cities including Delhi, Mumbai, Chennai, Kolkata, Jaipur, and Lucknow, while silver prices also moved lower. Investors are closely monitoring global developments, including geopolitical tensions in the Middle East and crude oil prices, which continue to influence commodity markets.

Gold Prices Retreat After Recent Rally

After registering gains in recent sessions, domestic gold prices opened lower on Friday. In the national capital, the price of 24-carat gold declined to ₹1,46,320 per 10 grams, while 22-carat gold was quoted at ₹1,34,140 per 10 grams.

The correction follows weakness in the international bullion market, where spot gold traded lower. Analysts say expectations surrounding future U.S. interest rate decisions remain one of the biggest factors influencing gold prices globally.

Higher interest rates generally make interest-bearing assets more attractive, which can reduce investor demand for non-yielding assets such as gold.

International Gold Prices Under Pressure

Global bullion prices also edged lower during early trading.

Spot gold was trading at approximately $4,042.77 per ounce, while U.S. gold futures for August delivery were around $4,045.60 per ounce.

Market participants continue to assess the impact of renewed geopolitical tensions involving the United States and Iran. At the same time, Brent crude oil prices have climbed above $100 per barrel, raising concerns over inflation and increasing speculation about future monetary policy decisions.

Although geopolitical uncertainty often supports safe-haven assets like gold, expectations of higher interest rates have limited further gains in the precious metal.

Fed Rate Expectations Remain in Focus

Investors are also keeping a close watch on the U.S. Federal Reserve's upcoming policy meetings.

According to the CME FedWatch Tool, financial markets broadly expect the Federal Reserve to leave benchmark interest rates unchanged during its July 28–29 policy meeting. However, traders are assigning a high probability to a possible rate hike during the September meeting.

Interest rate expectations often play a significant role in determining gold prices. When borrowing costs rise, fixed-income investments may become more attractive compared to precious metals, leading to lower demand for gold.

Latest Gold Prices in Major Indian Cities

Here are the latest retail prices for 22-carat and 24-carat gold across major Indian cities.

City 22-Carat Gold (per 10g) 24-Carat Gold (per 10g)

Delhi	₹1,34,140	₹1,46,320
Mumbai	₹1,33,990	₹1,46,170
Ahmedabad	₹1,34,040	₹1,46,220
Chennai	₹1,35,010	₹1,47,290
Kolkata	₹1,33,990	₹1,46,170
Hyderabad	₹1,33,990	₹1,46,170
Jaipur	₹1,34,140	₹1,46,320
Bhopal	₹1,34,040	₹1,46,220
Lucknow	₹1,34,140	₹1,46,320
Chandigarh	₹1,34,140	₹1,46,320

Among the listed cities, Chennai recorded the highest 24-carat gold price at ₹1,47,290 per 10 grams, while Mumbai, Kolkata and Hyderabad quoted the lowest price at ₹1,46,170 per 10 grams.

Silver Prices Also Edge Lower

The decline was not limited to gold. Silver prices also softened in both domestic and international markets.

In India, silver was trading at around ₹2,39,900 per kilogram on Friday morning. Internationally, spot silver slipped to approximately $57.56 per ounce, reflecting weakness across precious metals.

Meanwhile, platinum was quoted at around $1,592.97 per ounce, indicating mixed movement in the broader precious metals segment.

What Is Driving Gold Prices?

Several domestic and global factors continue to influence bullion prices, including:

• Expectations regarding U.S. Federal Reserve interest rate decisions.

• Inflation concerns linked to rising crude oil prices.

• Geopolitical developments affecting investor sentiment.

• Fluctuations in the U.S. dollar.

• Demand from jewellery buyers and central banks.

Analysts note that gold may remain volatile in the coming weeks as investors await key economic data and central bank policy announcements.

Should Buyers Purchase Gold Now?

Gold prices fluctuate daily based on international trends, currency movements, and domestic demand. Consumers planning to buy jewellery or invest in bullion are advised to compare local rates, making charges, taxes, and purity certifications before making a purchase.

With global markets reacting to inflation expectations and monetary policy signals, gold prices could continue to witness short-term fluctuations, making it important for buyers and investors to stay updated with the latest market developments.