Silver Price Today- Gold Falls as Fed Signals Rate Hike, Silver Holds Firm

Silver Price Today– Gold prices have seen a marginal decline in India’s domestic futures market amid rising geopolitical tensions between Israel and Iran, and the U.S. Federal Reserve’s continued hawkish tone on interest rates. Despite the drop, the yellow metal remains historically strong, continuing to serve as a key safe-haven asset during times of uncertainty.

Data shows that gold prices have surged over the last two decades, increasing by nearly 1,200%, from ₹7,638 per 10 grams in 2005 to over ₹1,00,000 in 2025 (as of June). Similarly, silver has also experienced significant growth — up by 668.84% over the same period.

The yellow metal is on a six-month winning streak, a historical achievement last witnessed in May 2002.

Let’s delve deeper into the latest market dynamics and examine how silver, in particular, has performed amid global unrest and economic pressures.

Silver Prices Hold Firm Above ₹1 Lakh/kg

Silver continues to perform strongly in the commodities market, maintaining prices above ₹1,00,000 per kg for three consecutive weeks. As of June 19, 2025, the IBA (Indian Bullion Association) reported silver (999 Fine) at ₹1,06,770/kg.

Retail Silver Rates in Key Cities (June 21, 2025)

Delhi: Slight fluctuation noted, but prices remain above ₹1,06,000/kg
Mumbai: High demand in retail jewellery sector sustains premium levels
Kolkata and Hyderabad: Stable prices in both bullion and coin markets
Bengaluru: Increased investor interest keeps prices resilient
Chennai: Marginal drop, but well above ₹1 lakh threshold

Please be aware that the final prices paid by consumers for gold or silver jewellery may vary significantly from the standard market rates. This variation is primarily due to additional costs imposed by individual jewellers, which can include making charges, Goods and Services Tax (GST), and other applicable local taxes or levies. These charges may differ depending on the region, the type of jewellery, craftsmanship involved, and the policies of the specific retailer. Therefore, customers are advised to confirm all charges in advance to avoid any confusion or unexpected expenses.

Gold Market Sees a Short-Term Pullback

Gold opened lower on June 19 at ₹99,096 per 10 grams (MCX futures). According to IBA, 24-carat gold was priced at ₹99,300/10 gm, and 22-carat gold at ₹91,025/10 gm.

Despite the recent dip, the longer-term trend remains positive. Gold prices rose 3% in June alone, and if the month ends on a positive note, it would mark six consecutive months of gains — a rare occurrence historically seen only 13 times in 75 years.

Gold prices have mostly remained on the higher side, particularly due to geopolitical concerns.

Factors Behind Recent Fluctuations

Geopolitical tensions: Escalation in the Middle East, particularly between Israel and Iran, has increased global risk sentiment.
Federal Reserve policy: The Fed’s firm stance on interest rates has strengthened the dollar, putting temporary pressure on gold.
Market volatility: Investors continue to turn to precious metals as a hedge, but short-term corrections remain part of the broader trend.

Safe-Haven Appeal Amid Uncertainty

Experts agree that both gold and silver continue to act as strategic hedges during uncertain times, though how they are incorporated into a portfolio should depend on broader financial goals and market understanding.

Amid market volatility and geopolitical concerns, gold and silver are considered safe-haven investments.

However, it is crucial for individual investors to approach financial decisions with careful consideration. Before making any investment, individuals are strongly encouraged to conduct thorough personal research, stay informed about current market trends, and, when necessary, seek guidance from licensed financial advisors or certified professionals. The information presented in this article is intended solely for general informational purposes and should not be interpreted or relied upon as financial or investment advice.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.