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Gold prices took a significant dip in the Indian bullion market on Monday, offering a moment of relief to buyers after a consistent upward trend. The price of 24-carat gold declined by ₹17 per gram, leading to a reduction of ₹170 per 10 grams, bringing the current rate down to ₹1,01,660. Meanwhile, silver prices also saw a marginal drop, adding to the cautious sentiment among investors and traders alike.

24K Gold Rates Drop After a Brief Surge

Over the past week, from June 11 to June 14, gold prices had been climbing steadily, reaching near two-month highs. This increase was largely driven by escalating geopolitical tensions in the Middle East, particularly between Israel and Iran. Fears of a potential large-scale conflict prompted investors to move towards safer assets, with gold being a traditional safe-haven investment.

However, the rally seems to have cooled down at the beginning of this week. On Monday, 24-carat gold (per 10 grams) saw a price fall of ₹170, coming down from ₹1,01,830 on Sunday to ₹1,01,660. Similarly, the rate for 100 grams of 24K gold slid by ₹1,700 to settle at ₹10,16,600, down from the previous ₹10,18,300.

22K Gold Prices Also Decline

The prices for 22-carat gold also mirrored the downward trend. As per market data, 10 grams of 22K gold dropped by ₹150, settling at ₹93,200, compared to ₹93,350 the previous day. The 100-gram rate also dropped by ₹1,500, now priced at ₹9,32,000.

18K Gold Sees Moderate Fall

The price correction was also evident in the 18-carat segment. A decline of ₹120 per 10 grams was recorded, bringing the price down to ₹76,260 from ₹76,380. For a 100-gram purchase, the price dropped by ₹1,200, falling from ₹7,63,800 to ₹7,62,600.

Silver Prices Slump Slightly

Silver, which had maintained a stable price for the last few days, also experienced a minor dip. The rate for 100 grams of silver fell by ₹10 to ₹10,990. Likewise, a kilogram of silver witnessed a ₹100 decrease, now trading at ₹1,10,000.

Expert View: What's Behind the Price Movements?

According to a report by Nirmal Bang, last week's surge in gold prices was largely due to the military strikes by Israel on Iranian nuclear facilities and senior military leaders. These events heightened fears of a broader war, pushing gold prices up by as much as 1.8% at one point.

Israeli Prime Minister Benjamin Netanyahu has stated that the military operation will continue until all threats are neutralized. In retaliation, Iran has issued stern warnings and even launched drone strikes toward Israel. Despite the U.S. denying involvement, Iran has threatened to respond to American interests as well.

Adding to the complexity, recent U.S. economic data—such as weakening inflation and job growth figures—has led to speculation that the Federal Reserve might cut interest rates later this year. Such a move typically supports higher gold prices as it lowers the opportunity cost of holding non-yielding assets like gold.

Despite today’s pullback, gold has appreciated by nearly 30% since the beginning of the year, underlining its importance as a hedge against both inflation and geopolitical instability.

Key Takeaways

• 24K Gold: Down ₹170 per 10g; now at ₹1,01,660

• 22K Gold: Down ₹150 per 10g; now at ₹93,200

• 18K Gold: Down ₹120 per 10g; now at ₹76,260

• Silver: Down ₹10 per 100g; now at ₹10,990

• Geopolitical tension and weak U.S. economic data are influencing the gold market dynamics.

For those looking to invest in precious metals, the current price drop might offer a window of opportunity, but market volatility suggests that staying updated on global developments remains essential.