Gold and Silver Prices Drop in Varanasi: 24-Carat Gold Down

As July begins, the bullion market in Varanasi has opened with a slight but noticeable dip in the prices of both gold and silver, bringing some cheer to buyers. According to the Varanasi Bullion Association, gold prices have slipped by ₹160 per 10 grams, while silver has seen a ₹100 per kg reduction.

With the festive and wedding season approaching, this dip could influence short-term buying trends in the precious metals segment across Uttar Pradesh and neighboring states.

 Gold Prices in Varanasi – July 1, 2025

As per the latest update from the Varanasi Bullion Market, the price of 24-carat gold has fallen by ₹160, bringing it down to ₹97,410 per 10 grams from the previous day’s rate of ₹97,570. Similarly, 22-carat gold dropped by ₹150, now trading at ₹89,300 per 10 grams, compared to ₹89,450 on June 30.

Even 18-carat gold, which is widely used in lightweight jewelry and designer ornaments, saw a fall of ₹120 per 10 grams, currently priced at ₹73,070.

 Summary of Gold Rate Movement in Varanasi:

 Expert Insight: Why Are Gold Prices Falling?

According to Santosh Kumar Agrawal, President of the Varanasi Sarafa Association, gold prices have been under pressure due to global market corrections and fluctuating demand. Internationally, factors like easing inflation in the US, stable dollar value, and investor movement towards equity markets have led to a cooling in bullion rates.

“The way gold rates have been consistently dropping over the past few days, we expect it might reach the ₹95,000 mark soon in Varanasi for 24-carat purity,” Agrawal said.

However, he cautioned that the market is still volatile, and price fluctuations are expected to continue due to changing global economic signals.

 Importance of Checking Purity and Hallmarking

If you’re planning to buy gold at these lower prices, remember:

• 24-carat gold is considered the purest form, mainly used in bars and coins.

• 22-carat gold is the most common for jewelry.

• Always look for the BIS Hallmark to ensure authenticity.

• The gold price mentioned here excludes GST and making charges, which may vary across jewelers.

 Silver Prices Also Ease in Varanasi Market

Alongside gold, silver prices have also declined slightly. On July 1, the price of silver fell by ₹100 per kilogram, now standing at ₹1,07,700/kg, compared to ₹1,07,800/kg on June 30.

Notably, silver prices had touched ₹1,08,000/kg just two days ago on June 29, but consistent downward pressure in the global commodity markets has led to a correction.

 Recent Trend in Silver Prices:

Although the fall in silver rates is modest, frequent fluctuations signal market instability driven by global industrial demand, commodity futures, and currency volatility.

 What’s Driving the Bullion Market Correction?

Key Factors Behind the Gold and Silver Price Drop:

1. Global Market Sentiment: Stabilizing global inflation and lower gold buying by central banks are easing bullion prices.

2. US Dollar Strength: A stronger dollar typically pushes gold and silver prices down internationally.

3. Declining Retail Demand: As prices had previously surged, local buyers have held back purchases, expecting further drops.

4. Rate Hikes Paused: Speculation that major central banks, including the US Fed, may halt interest rate hikes has reduced hedging demand for gold.

 Is It a Good Time to Buy Gold or Silver?

With prices dropping consistently, this may be a good time for:

• First-time investors in gold bars or sovereign gold bonds (SGBs).

• Jewelry buyers planning for upcoming weddings or festivals like Raksha Bandhan and Teej.

• Silver buyers for gifting or daily-use utensils, as rates are relatively affordable.

However, market experts caution buyers to remain updated with daily prices, as any geopolitical tension or inflation data may instantly push rates back up.

The beginning of July 2025 has brought a mild sense of relief for bullion buyers, with gold and silver prices dipping slightly in Varanasi. Whether this trend will sustain depends largely on global financial cues, Indian demand patterns, and festive buying trends.

As always, before purchasing, ensure:

• You check the daily gold and silver rates

• Ask for BIS hallmark certified jewelry

• Compare prices across reputed jewelers

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