Gold Prices Fall Sharply as Strong Dollar and Profit Booking Drag Bullion Lower

Gold prices witnessed a sharp correction on May 16 after recent record-breaking rallies, with both gold and silver slipping in domestic and international markets. Market experts say the decline has been driven by a stronger US dollar, heavy profit booking by investors, and changing global market sentiment.

In Delhi, the price of 24-carat gold dropped to ₹1,58,050 per 10 grams on Friday morning. A day earlier, 99.9% pure gold in the Delhi bullion market had already fallen by ₹3,200, or nearly 1.93%, settling around ₹1.62 lakh per 10 grams.

At the same time, silver prices also declined sharply, continuing the recent correction seen in precious metals after months of rapid gains.

Why Gold Prices Are Falling

Analysts believe multiple global factors are putting pressure on gold prices.

The biggest reason behind the decline is the strengthening of the US dollar. Since gold is globally traded in dollars, a stronger dollar generally makes the metal more expensive for international buyers, reducing demand.

Another major factor is profit booking by investors. Gold prices had surged rapidly in recent months because of geopolitical tensions, import duty changes, and safe-haven buying. After the steep rally, many investors have now started selling to secure profits.

Internationally, spot gold was trading near $4,548.46 per ounce, reflecting weakness in global bullion markets.

Experts also say investors are closely monitoring:

• US economic policy
• Interest rate expectations
• Global geopolitical tensions
• Energy prices
• Currency market movements

All these factors continue influencing gold and silver prices worldwide.

Latest Gold Prices in Major Indian Cities

Gold prices vary slightly between cities depending on local taxes, transportation, and demand conditions.

Delhi Gold Rate

In Delhi:

• 24-carat gold: ₹1,58,050 per 10 grams
• 22-carat gold: ₹1,44,890 per 10 grams

Mumbai and Kolkata Gold Rate

In Mumbai and Kolkata:

• 24-carat gold: ₹1,57,900 per 10 grams
• 22-carat gold: ₹1,44,740 per 10 grams

Chennai Gold Rate

In Chennai:

• 24-carat gold: ₹1,61,070 per 10 grams
• 22-carat gold: ₹1,47,640 per 10 grams

Pune and Bengaluru Gold Rate

In Pune and Bengaluru:

• 24-carat gold: ₹1,57,900 per 10 grams
• 22-carat gold: ₹1,44,740 per 10 grams

Gold Price Table in Major Cities City 22-Carat Gold (₹/10g) 24-Carat Gold (₹/10g)

Delhi	₹1,44,890	₹1,58,050
Mumbai	₹1,44,740	₹1,57,900
Ahmedabad	₹1,44,790	₹1,57,950
Chennai	₹1,47,640	₹1,61,070
Kolkata	₹1,44,740	₹1,57,900
Hyderabad	₹1,44,740	₹1,57,900
Jaipur	₹1,44,890	₹1,58,050
Bhopal	₹1,44,790	₹1,57,950
Lucknow	₹1,44,890	₹1,58,050
Chandigarh	₹1,44,890	₹1,58,050

Silver Prices Also Witness Major Decline

Silver prices also remained under pressure.

On May 16 morning, silver was trading around ₹2,89,900 per kilogram in the domestic market.

A day earlier, silver prices in the Delhi bullion market had fallen by ₹21,600, or nearly 7.3%, settling around ₹2,75,000 per kilogram.

Internationally, spot silver prices were trading near $78.21 per ounce.

Earlier this year, silver prices in India had crossed the ₹4 lakh per kilogram mark, making the current correction particularly significant for investors.

Global and Domestic Factors Influencing Prices

Experts say precious metal prices in India are affected by both domestic and international developments.

Major influencing factors include:

• US dollar strength
• Crude oil prices
• Geopolitical tensions
• Global inflation concerns
• Central bank policies
• Import duties
• Investor sentiment

Recent tensions in West Asia and volatility in global energy markets have also contributed to sudden price fluctuations in bullion markets.

India’s Gold Imports Surge Sharply

Despite high prices, India’s gold imports increased significantly in April 2026.

According to Commerce Ministry data:

• Gold imports rose 81.69% to $5.62 billion in April
• Silver imports jumped 157.16% to $411 million

During financial year 2025-26:

• Gold imports increased 24% in value terms to a record $71.98 billion
• However, gold import volume declined 4.76% to 721.03 tonnes

Silver imports also witnessed strong growth:

• Import value rose nearly 150% to $12 billion
• Import quantity increased 42% to 7,334.96 tonnes

Investors Watching Market Carefully

Market experts believe gold and silver may continue witnessing volatility in the coming weeks due to uncertainty in global financial markets.

Investors are now closely tracking:

• US Federal Reserve policy decisions
• Dollar movement
• Global inflation trends
• Geopolitical developments
• Commodity market activity

While some analysts expect short-term corrections to continue, others believe long-term demand for gold as a safe-haven asset could remain strong if global uncertainty persists.