India could soon require silver jewellery to carry official hallmarks, but only after the necessary infrastructure is in place, Bureau of Indian Standards (BIS) Director General Sanjay Garg announced on Tuesday, January 6.

Speaking at the 79th foundation day of the BIS, Garg emphasised the critical role of quality standards in national development. "Quality is the single most determining factor between a developed and a developing nation," he stated, highlighting how developed countries excel in infrastructure, governance, civic amenities, health services, and hospitality.

Understanding Hallmarking Benefits

Hallmarking serves as a certification that guarantees the purity of precious metals such as gold and silver. Each hallmark displays the metal's fineness, the BIS logo, the jeweller's identification mark, and in some cases, a unique Hallmarking Unique Identification (HUID) number. For consumers, hallmarked jewellery provides assurance that they are paying for the metal's declared purity, significantly reducing the risk of fraud or low-quality products.

Current Gold Hallmarking Progress

BIS has made substantial progress in gold hallmarking implementation across India:

Silver Hallmarking Development

Silver hallmarking has commenced on a voluntary basis and is gaining significant momentum. Since September 1, silver jewellery and articles can be hallmarked under a HUID-based system, with more than 23 lakh silver items certified so far. This system allows buyers to verify purity before making purchases.

"There is industry demand to make silver hallmarking mandatory, but we will do so only when the necessary infrastructure is ready," Garg explained. The phased approach ensures proper implementation without disrupting market operations.

Consumer Impact

For consumers, hallmarked silver jewellery is currently available, providing shoppers with a reliable method to ensure quality and avoid under-purity products. Once mandatory silver hallmarking is implemented, the system is expected to cover more districts and retailers, making it significantly easier to identify certified silver across the country.

BIS continues working to ensure access to safe and reliable products while supporting industry compliance, maintaining its commitment to consumer protection and market transparency.

Gold and silver prices opened weak on Wednesday as investors engaged in profit-booking following recent rallies that pushed precious metals to one-week highs. The decline affected both domestic and international markets, with geopolitical tensions continuing to provide underlying support for safe-haven assets.

MCX Trading Performance

Domestic precious metals showed notable declines on the Multi Commodity Exchange (MCX) as profit-taking dominated trading sentiment:

International Market Trends

Global precious metals markets mirrored the domestic weakness, with spot gold falling 0.60% to $4,469.04 per ounce after achieving nearly 3.00% gains in the previous session. The pullback came despite continued geopolitical tensions and market uncertainty that typically support bullion demand.

Investors are now focusing on upcoming US payroll data for insights into the Federal Reserve's interest rate trajectory, which could significantly impact non-yielding precious metals.

Physical Gold Rates Across Major Cities

Physical gold prices varied across major Indian cities, reflecting regional market dynamics:

Expert Trading Recommendations

Jateen Trivedi of LKP Securities provided guidance for gold trading amid current market conditions. He noted that risk sentiment continues to favor higher allocation towards gold due to renewed geopolitical tensions, including reports of US involvement with Venezuela and heightened global uncertainty.

Trivedi expects gold to remain volatile but with an upward bias, projecting a near-term trading range between Rs 1,37,000 and Rs 1,42,000. The expert emphasized that geopolitical developments, including asset freezes by Swiss authorities following recent Venezuelan developments, could deepen safe-haven flows into precious metals.

Market Outlook

The precious metals complex continues to navigate between profit-taking pressures and safe-haven demand driven by geopolitical tensions. While short-term volatility persists, underlying factors including global uncertainty and potential Federal Reserve policy changes maintain support for gold and silver as defensive assets in investor portfolios.