Sun Mar 02 23:30:00 UTC 2025: ## Gold Prices Retreat After Record Highs; Silver Also Takes a Dip

**Mumbai, March 1, 2025** – Gold prices, which saw a remarkable 12% surge in the eight weeks leading up to February 22nd, experienced a significant downturn this week. After reaching an all-time high of ₹88,090 per 10 grams (24K) on Tuesday, prices retreated, closing at ₹86,620 on Saturday – a drop of over ₹1,150 for the week. Similarly, 22K gold fell by ₹1,050, trading at ₹79,400 per 10 grams. This marks the first weekly loss for gold in nine weeks.

The global gold market mirrored this trend. After hitting a record high of $2,954 per ounce on Tuesday, gold prices fell more than 2% to trade below $2,900 per ounce by Friday.

The price decline is attributed to several factors. Profit-booking at record levels dampened demand, while a strengthening US dollar, reaching near multi-week highs of 107.39 on Friday, reduced the appeal of non-yielding gold. Increased trade war concerns and the expectation of the US Federal Reserve maintaining interest rates to curb inflation further contributed to the downturn. Weakening domestic demand, particularly due to a less auspicious marriage season in March, also played a role.

Silver also experienced a significant drop, plummeting by over 3% or ₹3,500 per kg this week, closing at ₹97,000 per kg on Saturday. This followed a sharp decline on Wednesday, attributed to weak demand and a renewed US push for fossil fuels.

While the recent price drops mark a shift from the recent bull run, analysts will be watching closely for market indicators in the coming weeks to gauge the future direction of precious metal prices.

Read More