Gold Prices Drop- The year 2025 has begun with a significant shift in India’s precious metals market. Following the introduction of the new GST rules on gold and silver, prices of both metals have witnessed a sudden and noticeable decline across the country. The change has sparked curiosity among investors, jewellers, and regular buyers who have long been tracking the fluctuating gold rates.
This development is being seen as a strategic move by the government to make the purchase of gold and silver more accessible while also boosting transparency and sales in the organised jewellery sector. Let’s take a detailed look at how the new GST policy has impacted prices and what the latest gold and silver rates are today.
Revised GST Rules for Gold and Silver in 2025
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The Government of India has revised the Goods and Services Tax (GST) structure for the jewellery sector in 2025. Until now, gold and other precious metals attracted a 3% GST, which was often criticised for keeping prices high and encouraging unregistered or informal market transactions.
Under the new GST framework, the tax rate has been slightly reduced, aiming to lessen the financial load on buyers. Though the reduction may appear small, it has made a substantial difference in market sentiment. Jewellers across major cities have started revising their pricing structures, and within days of the announcement, gold prices fell by several hundred rupees per 10 grams.
This tax adjustment is expected to not only attract more customers but also strengthen compliance within the jewellery trade. Experts believe that this move will encourage buyers to make purchases from GST-registered jewellers, promoting accountability and reducing the black-market trade in gold.
Impact on Gold Prices Across Major Indian Cities
The immediate impact of the new GST rule is visible in gold rates across major Indian cities. On Tuesday, 24-carat gold was priced around ₹61,200 per 10 grams in Delhi, while 22-carat gold stood at approximately ₹56,100 per 10 grams.
Similarly, in Mumbai and Chennai, gold prices dropped by ₹500 to ₹700 per 10 grams, depending on the purity and local market demand. Kolkata, Bengaluru, and Hyderabad have reported comparable price movements.
According to market analysts, this reduction in price has made gold jewellery, bars, and coins slightly more affordable, leading to increased footfall in jewellery stores. Many customers, particularly those planning wedding purchases, are taking advantage of this price dip.
Global Factors Contributing to the Price Drop
While the new GST rules have triggered the recent fall, global market conditions have also played a role in softening gold prices. In the international market, the price of gold per ounce has slightly weakened due to the strengthening of the US dollar index and a temporary dip in global demand.
These international shifts, combined with domestic tax reforms, have led to the current downward correction in gold prices. However, experts caution that this decline may not last long. Historically, gold tends to regain strength once global economic uncertainties or inflationary pressures rise. Therefore, analysts consider the current phase as an ideal buying window for both short-term and long-term investors.
Silver Prices Also Take a Hit
It’s not just gold that has become cheaper—silver prices have also fallen notably following the GST revision. A few weeks ago, silver was trading at around ₹78,000 per kilogram, but the current average rate has dropped to ₹76,500 per kilogram in most Indian cities.
This decline is being attributed to both the GST adjustment and global pricing trends. The reduced price has encouraged households and small investors to make bulk purchases, especially for upcoming weddings and festive occasions.
For many families, silver is not just a metal of value but a symbol of tradition and prosperity. Hence, the price drop has sparked renewed interest among buyers who had postponed their purchases due to earlier high rates.
A Golden Opportunity for Buyers and Investors
The combination of a GST reduction and global market correction has created a favourable scenario for buyers. For individuals who regularly invest in gold as a form of savings, the current price levels are particularly appealing.
Financial experts say that this moment offers a “buy low” opportunity, especially for those purchasing gold for long-term purposes like weddings, gifting, or portfolio diversification. Many also believe that buying now, before the next global price hike, could yield significant benefits in the months to come.
Jewellers across India have reported a noticeable uptick in customer inquiries and advance bookings for jewellery. The renewed enthusiasm in the market suggests that the government’s policy change is achieving its desired effect—reviving demand in the formal jewellery sector.
What to Keep in Mind Before Buying Gold
While the drop in gold and silver prices is good news for consumers, experts advise buyers to check daily rates and purchase only from trusted, GST-registered jewellers. The gold market remains volatile, and prices can shift quickly based on global economic indicators such as oil prices, interest rates, and currency fluctuations.
ALSO READ- Hyundai Car Sales Report September 2025 – Creta, Venue, Aura, Exter, and Alcazar PerformanceLong-term investors are also encouraged to monitor the global gold trends, as factors like the US dollar strength, central bank policies, and geopolitical tensions could influence future prices.
A Promising Start to 2025 for Precious Metal Buyers
With the new GST policy reducing the price burden and both gold and silver becoming more affordable, 2025 has begun on a promising note for India’s jewellery market. Buyers, investors, and jewellers alike are optimistic that this reform will lead to more transparent, competitive, and vibrant trading conditions.
For now, the message is clear—if you’ve been waiting for the right time to buy gold or silver, this may be your moment. Prices are favourable, demand is picking up, and the new GST framework ensures greater transparency and fairness for all stakeholders in the market.
The information provided is based on publicly available sources. Readers are advised to verify current gold and silver rates and consult official channels or financial experts before making major investment decisions.
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