Gold prices are continuously falling. After falling by over ₹15,000 in June, it also witnessed a major decline on the first day of July. On July 1, gold prices fell by ₹1,900, while silver became cheaper by ₹6,000. Between February and June 2026, 24-carat gold prices have fallen by about ₹36,000. Gold was at its highest level on January 29, at ₹1.76 lakh per 10 grams; By July 1, this price dropped to ₹1.39 lakh per 10 grams. Despite such a huge fall in prices, there has been no increase in gold purchases.
**Gold is cheap – so why aren’t people buying?**
Even after this fall in gold prices, there has been no increase in purchases. According to a report by India Bullion and Jewelers Association (IBJA), the demand for gold has declined by up to 70 percent. IBJA Secretary Surendra Mehta says that after the increase in import duty, the demand in the Indian market has fallen by 70 percent. It is noteworthy that on May 13, the government had increased the import duty on gold from 6 percent to 15 percent; This increase has had a clear impact on the purchase of gold.
**Prime Minister’s appeal not to buy gold**
Earlier, Prime Minister Narendra Modi had appealed to the citizens not to buy gold. This appeal proved effective, and now people are selling their old gold instead of buying new stock. The IBJA report also said that people are cautious about new purchases after the government increased import duty; Instead of buying new gold, they are making do with selling or exchanging the gold they already have. Between April and June 2026, Indians raised cash by selling about 50 tonnes of old gold. People fear that gold prices may fall further.
Gold price fell below $4,000 in the international market
In the international market, gold has fallen below the important level of $4,000 per ounce. The price of gold on July 1 was $3,987.48. Gold prices are continuously falling due to tensions in the Middle East and expectations of continued interest rate hikes in the US.
What will be the impact of decline in demand for gold?
This decline in demand for gold may reduce the burden on the government treasury and save foreign exchange reserves, but it is causing huge losses to millions of jewellers. The jewelery sector is under pressure. The decline in demand has cast a cloud of uncertainty over the livelihoods of millions of people; Especially the concern of small scale workers is increasing. All jewelery traders, big and small, are worried.
What is the price of gold today and how much has it fallen?
On MCX, gold prices have fallen by ₹50,000 from their all-time high. The price at the beginning of the year was ₹1,92,991 per 10 grams; Now it has fallen to ₹ 1,42,546 per 10 grams. In the global market, spot gold prices fell 0.6% to $3,981.69 an ounce – the biggest fall in seven months. Talking about the domestic market, the prices of gold and silver published on the website of India Bullion and Jewelers Association are as follows:
24-carat gold price: ₹1,38,876 per 10 grams
22-carat gold price: ₹1,27,772 per 10 grams
18-carat gold price: ₹1,08,576 per 10 grams