Gold Prices Drop ₹250 as Global Dollar Strength Pressures Bullion – Gold Rate Update 17 June 2025
Gold prices fell by ₹250 on June 17, 2025, due to strong US dollar and global market trends affecting bullion demand and investor sentiment.
Introduction:
On 17 June 2025, gold prices in India witnessed a decline of ₹250 per 10 grams, driven by a stronger US dollar, rising bond yields, and reduced global demand for safe-haven assets. Investors remained cautious ahead of key economic data releases and interest rate signals from global central banks.
Today’s Gold Price Overview (India):
-
24K Gold (10 grams): ₹71,450 (down ₹250)
-
22K Gold (10 grams): ₹65,470 (down ₹230)
-
Silver (1 kg): ₹88,100 (marginally down)
Prices may vary slightly depending on the city and jeweler.
Key Factors Behind the Price Drop:
-
Stronger US Dollar Index:
-
The US Dollar Index (DXY) rose above 105.2, making gold costlier for other currency holders.
-
This led to a fall in global gold demand, impacting Indian prices.
-
-
Global Market Cues:
-
Spot gold fell to $2,296 per ounce in international markets.
-
Investors are shifting focus from gold to equities due to better returns and easing inflation data.
-
-
Interest Rate Outlook:
-
Hopes of delayed rate cuts by the US Federal Reserve weakened gold’s appeal as a non-yielding asset.
-
Rising US treasury yields put pressure on gold prices.
-
-
Reduced Safe-Haven Demand:
-
With geopolitical tensions cooling off, the demand for gold as a safe-haven has temporarily reduced.
-
Investor Perspective:
Experts advise that this correction in gold price offers a buy-on-dips opportunity for long-term investors. Gold remains a valuable hedge against inflation and economic uncertainty, especially with festivals and the wedding season approaching in India.
What to Expect Next?
-
Volatility may continue in the short term, depending on:
-
Global interest rate updates
-
US inflation and employment data
-
Central bank policies and geopolitical developments
-
If the dollar stabilizes and global uncertainty rises again, gold prices could bounce back in the coming weeks.
Conclusion:
The fall in gold prices on 17 June 2025 reflects broader global financial movements and temporary shifts in demand. While short-term corrections are common, gold continues to be a safe long-term investment. Investors should track global cues before making new entries.
