Gold and Silver Prices Decline on March 17, 2025: Weak Demand and Global Market Influences

KKN Gurugram Desk | Gold prices saw a decline on March 17, 2025, mainly due to weak demand from retailers and jewellers. On this Monday morning, both 24K and 22K gold saw reductions in their prices across major Indian cities. Despite these losses, global trends, particularly geopolitical concerns and trade war worries, kept the prices from falling drastically. Here’s an in-depth analysis of the current price situation for both gold and silver in India.

Gold Prices Drop on March 17, 2025

Gold, often considered a safe-haven investment, experienced a slight drop in the domestic market on March 17. The 24K gold price decreased by ₹10, settling at ₹89,660 per 10 grams. The 22K gold price also saw a reduction, dropping to ₹82,190 per 10 grams in major Indian cities. This decrease follows a ₹110 per 10 grams fall on March 15, 2025.

While gold prices are declining in India, the international market shows a more complex situation. On the global front, gold prices had recently breached the $3,000 per ounce mark, reaching this record level on March 14, 2025. The surge was primarily driven by recession fears in the United States, bullion purchases by China’s central bank, and ongoing geopolitical tensions worldwide.

The global trade war concerns and other international issues are pushing gold prices up internationally. However, in India, weak domestic demand is counteracting these global price movements. As a result, the decline in domestic gold prices remains moderate.

Gold Price Breakdown Across Major Indian Cities

On March 17, the gold prices saw slight variations in key cities in India. Here’s a closer look at the gold prices across some of the most significant urban markets:

• Delhi: 24K gold traded at ₹89,810 per 10 grams, and 22K gold was at ₹82,340 per 10 grams, showing a decline of ₹10 compared to the last closing.

• Mumbai: 24K gold was priced at ₹89,660 per 10 grams, and 22K gold stood at ₹82,190 per 10 grams.

• Chennai: The prices of gold were the same as Mumbai, with 24K at ₹89,660 per 10 grams and 22K at ₹82,190 per 10 grams.

• Kolkata: The price remained unchanged from Mumbai and Chennai, with 24K gold at ₹89,660 and 22K gold at ₹82,190.

While there are minor fluctuations in the prices from city to city, the general trend across India shows a slight decrease in gold prices on March 17, 2025.

Silver Prices Decline as Well

Alongside gold, silver prices also saw a downward trend on March 17, 2025. Silver prices slipped by ₹100 due to reduced demand from industrial users and coin makers. In the early trade, silver was priced at ₹1,02,900 per kilogram.

Earlier, silver had surged to an all-time high of ₹1,03,000 per kilogram on March 15, 2025, driven by strong global trends and the weakening of the US dollar. However, on March 17, 2025, silver prices saw a small retreat in response to weaker demand in India.

On the global front, spot silver rose by 0.05% to $33.79 per ounce in early Asian trade, reflecting a stable but moderate demand for the metal internationally. Despite the positive global movement, silver prices are experiencing slight fluctuations in India, influenced mainly by local factors such as demand from industrial users.

Silver Price Breakdown Across Major Indian Cities

Silver prices in different cities on March 17, 2025, reflected the weak demand seen in the Indian market. Here’s a breakdown of silver prices in major cities across the country:

• Delhi: ₹1,02,900 per kilogram.

• Mumbai: ₹1,02,900 per kilogram.

• Chennai: ₹1,11,900 per kilogram.

• Kolkata: ₹1,02,900 per kilogram.

While silver prices are uniform in most major cities, Chennai shows a higher price, which could be attributed to local demand variations and regional market conditions.

Comparison of Gold and Silver Prices Over the Week

In comparison to previous weeks, both gold and silver have seen notable fluctuations. Gold, which had performed strongly in line with global trends, experienced a dip on March 17, 2025, as domestic demand weakened. However, silver prices showed a distinct spike earlier in the week due to global market trends.

Here’s a look at how gold and silver prices have moved over the week:

From this table, it is clear that gold and silver prices have been fluctuating throughout the week. While gold prices saw a minor decrease on March 17, silver prices have been more volatile, hitting an all-time high before dipping slightly.

Why Are Gold and Silver Prices Fluctuating?

Gold and silver prices are highly sensitive to a variety of factors, both domestic and international. Here are the primary reasons for the fluctuations seen in the last week:

1. Global Economic Uncertainty: Geopolitical tensions, recession fears in the United States, and ongoing trade war concerns have impacted the prices of both gold and silver. These metals are often considered safe-haven assets during times of uncertainty, leading to price increases.

2. Weak Domestic Demand: Despite global trends pushing prices higher, the demand for gold and silver in India has weakened. Retailers and jewellers are holding back on purchases, leading to a drop in prices in the domestic market.

3. Currency Movements: The weakening of the US dollar has had an impact on the prices of precious metals globally. When the US dollar weakens, gold and silver typically become more attractive, pushing their prices up.

4. Market Sentiment: In the case of silver, industrial demand plays a major role in driving prices. When demand from coin makers and industrial users is weak, prices tend to dip. However, when demand surges, as seen in the past week, silver prices spike.

Outlook for Gold and Silver Prices in the Coming Weeks

Looking ahead, the prices of gold and silver may continue to see fluctuations based on global economic conditions. If recession fears intensify or geopolitical tensions escalate, we might see further upward pressure on gold prices. Silver, on the other hand, will likely see more volatility, as its price is more closely tied to industrial demand.

In the short term, prices may remain relatively stable in India unless there is a major shift in global market conditions. Domestic factors, such as demand from jewellers and retail investors, will continue to influence the market dynamics.

On March 17, 2025, gold and silver prices in India experienced a slight decline due to weak domestic demand, despite strong global trends. Gold saw a drop of ₹10 per 10 grams, while silver prices fell by ₹100 per kilogram. While global factors, such as geopolitical concerns and recession fears, have been supporting the prices of these metals, local demand dynamics are playing a significant role in keeping the prices lower in India.

As investors and consumers monitor the fluctuations in gold and silver prices, it is essential to keep an eye on both domestic and global developments, as they will continue to influence price movements in the weeks to come. Stay updated on the latest trends in precious metal prices to make informed decisions in your investment strategies.