Gold Rates Slip Following PM Modi’s No-Buy Call

Gold Rates declined on Monday after Prime Minister Narendra Modi urged Indians not to buy gold for one year. He made the appeal during a BJP rally in Hyderabad while speaking about the economic challenges caused by the ongoing US-Iran conflict and global uncertainty.

PM Modi said India must protect its foreign exchange reserves and reduce unnecessary spending during the current global crisis. He also asked people to reduce fuel consumption because rising crude oil prices are increasing the country’s import bill. According to him, conserving resources has become important as international supply chains remain under pressure due to tensions in West Asia.

The Prime Minister also highlighted the impact of gold imports on the Indian economy. India remains one of the world’s biggest gold importers, especially during weddings and festival seasons. Since the country imports most of its gold, higher demand increases dollar outflow and puts additional pressure on foreign exchange reserves.

Following PM Modi’s statement, gold rates recorded a decline in several Indian cities. The price of 24-carat gold fell by ₹603 per gram, while 22-carat gold also witnessed a sharp drop. Market experts linked the decline to investor caution and changing market sentiment after the Prime Minister’s remarks.

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Gold Rates Fall Across Major Cities

In Delhi, the gold rate dropped to ₹151920 per 10 grams. Prices also declined in Mumbai, Chennai, and Kolkata. Silver prices, however, showed a slight increase in some cities. Experts said international market conditions and currency fluctuations continue to influence precious metal prices in India.

MCX gold futures for August 2026 also traded lower during early market hours. Analysts stated that global economic uncertainty and the strength of the US dollar continue to affect gold prices worldwide.

Economists believe the government wants to reduce pressure on the rupee by controlling non-essential imports like gold. A weaker rupee can increase inflation and make imported goods more expensive. Rising oil prices have already increased India’s economic burden during the ongoing Middle East conflict.

Experts also noted that gold and silver prices depend on many factors. These include global demand, interest rates, currency movements, and government policies. International economic conditions also continue to affect the Indian bullion market.

Also Read : PM Modi Advises Families to Skip Gold Purchases for One Year