Major Crash In Bangalore Gold Rates On Feb 28; 24 Carat Gold Slips Rs. 5400 Per 100g; Silver Down Too

Gold prices in Bangalore have seen a sharp decline this week, marking their third consecutive drop. Retail buyers are rejoicing as this fall comes after gold recently hit record highs. Bullion prices are currently down over 1%, following a back-to-back decline in rates.

On 28th February, gold rates in Bangalore for 22-carat gold fell massively by Rs. 500 per 10 grams to cost Rs. 79,600. While the 24-carat gold rates dropped by Rs. 540 to retail at Rs. 86,840 per 10 grams. In a similar way, 18-carat gold rates also slipped Rs. 410; currently, they cost Rs. 65,130.

100 grams of 24-carat gold rates in Bangalore are now at Rs. 8,68,400 after witnessing the decline of Rs. 5400, while the 22-carat gold in Bangalore also dropped by Rs. 5000 to cost Rs. 7,96,000

Gold Slips 3rd Time In Bangalore

The first two days of the week were strongly positive for the gold market, with prices surging massively to hit record highs. However, gold prices in Bangalore have recently seen a significant decline, which comes as good news for retail buyers. On the other hand, investors holding gold in the form of bullion may be considering profit booking.

In the international market, gold prices are slipping, with spot gold down nearly 2% this week, breaking its winning streak. The strengthening U.S. dollar and rising Treasury yields have reduced bullion's appeal. Meanwhile, trade tensions have escalated, as U.S. President Donald Trump announced that the imposed tariffs will take effect from March 4.

As per the Commodity Research report from ICICI Direct, "Gold is expected to face the hurdle near $2925 and move lower towards $2860 amid a strong dollar and higher treasury yields. The expectation of a rise in inflation numbers would lower the chances of 2 rate cuts in this year. Meanwhile, tariff uncertainty and increasing ETF flows could provide some support to the bullion. For the day, all eyes will remain on the US PCE price index, the Fed's preferred inflation measure. Moreover, comments from the Fed members would also bring price volatility".

Gold Prices in Major Indian Cities

Most of the Indian cities experience this rise in gold rates. Here are gold prices in some of the major cities in India:

Silver Prices in Bangalore Today

Silver prices in Bangalore today per kilogram currently cost Rs. 97,000 per kg after dropping by Rs. 1000 per kg. The price of 100 grams of silver is currently at Rs. 9,700, which slipped by Rs. 100 per 100 grams.

Gold and Silver Future Price on MCX

Gold futures on the Multi Commodity Exchange (MCX), set to mature on April 4, 2025, declined massively, trading at Rs. 84,630 after slipping 0.66%. A similar drop was seen in silver futures too, expiring on March 5, 2025, registering a sharp drop of 0.55% to Rs. 93,122 during the trading session.

As per the Commodity Research report from ICICI Direct. "MCX Gold April is expected to dip towards a 20-day EMA at ₹84,600, as long as it trades under the ₹85,800 level. Only below ₹84,600 would it open the doors towards ₹84,000. MCX Silver May is expected to face resistance near ₹96,600 and move lower towards ₹94,200."

Spot Gold and Silver Prices Surge

According to the latest Reuters report, spot gold fell 0.4% to $2,864.33 per ounce as of 0459 GMT. Bullion has declined 2.5% this week, marking its first weekly loss after eight consecutive gains. However, gold prices remain up 2.2% for February. Meanwhile, U.S. gold futures dropped 0.7% to $2,875.00, and spot silver edged down 0.2% to $31.19 per ounce.