Discover why gold and silver prices drop in India on September 4, 2025, after hitting record highs. Learn about market trends, global influences, and what’s driving precious metal prices.
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Why Did Gold and Silver Prices Drop in India?
On September 4, 2025, gold and silver prices in India took a step back from their record highs. After reaching all-time peaks, traders cashed in profits, leading to a price drop. This trend wasn’t just local—it followed a similar dip in global markets. Let’s break it down in simple terms.
Gold Prices in India Decline
Gold rates in the national capital fell by ₹1,000 on Thursday, September 4, 2025. Here’s what happened:
- 99.9% pure gold: Dropped to ₹1,06,070 per 10 grams from its record high of ₹1,07,070 per 10 grams on September 3, 2025.
- 99.5% pure gold: Fell to ₹1,05,200 per 10 grams (including taxes) from ₹1,06,200 per 10 grams the previous day.
This pullback came as traders sold gold to lock in profits after prices hit historic levels.
Silver Prices Follow the Trend
Silver also saw a decline after touching its highest-ever level.
- The price dropped by ₹500 to ₹1,25,600 per kilogram (including taxes) from ₹1,26,100 per kilogram on September 3, 2025.
- Like gold, silver’s drop was driven by investors selling at high prices to secure gains.
What’s Happening in Global Markets?
The price drop wasn’t limited to India. In global markets:
- Spot gold prices fell by $40.56 (1.10%) to $3,539.14 per ounce, down from a record high of $3,578.80 per ounce in New York the day before.
This global correction influenced India’s market, as local prices often follow international trends.
Why Are Gold and Silver Prices Still High?
Even with this drop, gold and silver prices remain strong. Experts point to several reasons:
- Geopolitical tensions: Global uncertainties make precious metals a safe investment.
- US Federal Reserve: Expectations of interest rate cuts in the US boost demand for gold and silver.
- Festive demand in India: With festivals approaching, people are buying more gold for celebrations and investments.
Renisha Chainani, Head of Research at Augmont, explains, “Gold and silver prices are supported by global uncertainties, concerns about debt, and questions about the US Federal Reserve’s policies.”
Should You Invest in Gold and Silver Now?
Despite the recent dip, gold and silver remain attractive investments. Their prices are still near record highs, and demand is expected to stay strong due to India’s festive season and global economic factors. If you’re thinking about investing, talk to a financial advisor to see if it’s the right time for you.
FAQs About Gold and Silver Prices
Q1: Why did gold and silver prices drop on September 4, 2025?
A: Prices fell because traders sold gold and silver to lock in profits after prices hit record highs. This was also influenced by a similar trend in global markets.
Q2: Are gold and silver still good investments?
A: Yes, they can be! Gold and silver are considered safe investments during uncertain times, and demand is high due to festivals in India and global economic factors.
Q3: Will gold and silver prices go up again?
A: It’s hard to predict, but experts say prices may stay strong due to geopolitical issues, interest rate expectations, and festive demand.
Q4: How are global markets affecting India’s gold prices?
A: Gold prices in India often follow global trends. When international prices drop, like they did on September 4, 2025, local prices tend to follow.
Q5: Where can I check the latest gold and silver prices?
A: You can check prices through trusted sources like the All India Sarafa Association or financial news websites.