Gold Prices Close 2025 with Sharp Decline as Markets Enter New Year
Gold crashes ₹662 in just two days while silver holds steady; India-UAE price gap widens to 6.8% as rupee strengthens
As 2025 comes to a close, gold prices have witnessed a significant drop, marking a dramatic end to the year that saw the precious metal touch historic highs earlier.
On December 31, gold prices continued their downward trend across both Indian and UAE markets. In India, 24-karat gold fell by ₹127 to close at ₹13,358 per gram. Similarly, 22-karat gold declined by ₹116 to ₹12,245, while 18-karat gold dropped ₹95 to reach ₹10,019.
The UAE market mirrored this bearish sentiment. 24-karat gold decreased by AED 5 to AED 511 per gram, with 22-karat and 18-karat varieties falling to AED 468.42 and AED 383.25 respectively.
While gold tumbled, silver prices displayed remarkable stability. In India, silver held firm at ₹240 per gram with no change from the previous day. However, UAE silver slipped marginally by AED 0.3 to close at AED 8.5.
The most striking development has been the sharp two-day correction from December 29 to 31, during which gold lost a substantial ₹662 in India. The UAE market saw similar pressure, with prices dropping from AED 532 to AED 511.
This correction comes after gold touched the ₹14,000 mark earlier in the year, representing one of the steepest short-term declines witnessed in recent months.
The exchange rate between the Indian rupee and UAE dirham improved to 24.47, strengthening the rupee’s position. Despite this, the price difference between the two markets has widened significantly.
Gold in India now costs ₹854 more per gram compared to UAE prices when converted at current rates, a 6.8% premium. The gap is even more pronounced for silver, with Indian prices running 15.4% higher at ₹32 per gram above UAE levels.
Market analysts point to several factors behind the year-end correction. Global economic uncertainties, changing investor sentiment, and profit-booking after the earlier rally to ₹14,000 levels have all contributed to the downward pressure on precious metal prices.
As markets prepare to enter 2026, investors and buyers are closely watching whether this correction will continue or if prices will stabilize in the new year.
