New Delhi: Gold prices in India experienced a decline of Rs 600 per 10 grams on Wednesday, settling at Rs 1,66,500, thereby halting a four-day upward trend. The dip was attributed to profit-booking by traders and weaker performance in international markets.
Information was available with The Chenab Times that the yellow metal, with 99.9 per cent purity, had concluded the previous trading session at Rs 1,67,100 per 10 grams.
In contrast, silver saw a modest recovery, gaining Rs 500 to reach Rs 2,50,500 per kilogram, inclusive of all taxes. This marked an increase from Tuesday’s closing price of Rs 2.5 lakh per kg, as reported by the All India Sarafa Association.
Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex, explained that gold eased in domestic markets as traders capitalised on the recent strong rally. He further indicated that a strengthening US dollar, preceding the release of the US Personal Consumption Expenditures (PCE) inflation report, also contributed to the decline in precious metal prices.
Globally, spot gold prices saw a reduction of approximately 1 per cent, falling to USD 4,619.21 per ounce. Silver also experienced a marginal decrease, trading at USD 68.50 per ounce.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that spot gold traded with a loss of nearly 1 per cent around USD 4,621 per ounce, consolidating after five consecutive days of gains. He also pointed out that crude oil prices have continued to fall due to easing supply concerns, influenced by ongoing discussions between Iran and Oman regarding the potential temporary opening of the Strait of Hormuz.
Singh further highlighted that holdings in gold-backed exchange-traded funds (ETFs) have witnessed a significant surge in recent weeks.
Looking ahead, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, stated that any signals from the US Federal Reserve regarding its approach to inflation and monetary policy will be crucial. Such indications could influence the US dollar, Treasury bond yields, and consequently, precious metal prices. Investors are also anticipating the speech of US Fed Chair Kevin Warsh at the Jackson Hole Symposium scheduled for Friday, which could provide further direction for the markets.
The performance of gold in the domestic market reflects a broader trend influenced by global economic indicators, central bank policies, and investor sentiment. The current dip is seen as a temporary correction after a sustained period of appreciation, with future movements likely to be dictated by upcoming economic data and policy pronouncements from major economies.
The Chenab Times News Desk