New Delhi: Gold prices in the national capital experienced a decline for the second consecutive session, dropping by Rs 800 to reach Rs 1,65,700 per 10 grams on Thursday. This dip occurs just ahead of the Rakshabandhan festival, a period traditionally marked by increased consumer spending on gifts and jewellery.
Information was available with The Chenab Times indicating that the yellow metal of 99.9 per cent purity had closed at Rs 1,66,500 per 10 grams on Wednesday. In contrast, silver prices remained unchanged at Rs 2,50,500 per kilogram, inclusive of all applicable taxes, according to local traders.
The recent fall in gold prices is attributed by market analysts to a combination of factors, including a rebound in the U.S. dollar and an increase in Treasury bond yields. Spot gold traded lower on Thursday as a recovery in the U.S. dollar and Treasury yields exerted downward pressure on the precious metal, following stronger-than-expected U.S. inflation data. Gold has now declined by Rs 1,400 over the last two trading sessions, having previously touched Rs 1,67,100 per 10 grams on Tuesday.
Silver, however, demonstrated greater resilience in both local and international markets. While local traders reported stability, overseas markets saw silver rise by 0.31 per cent to trade at USD 68.32 per ounce. Investors have continued to seek safe-haven assets, with spot silver hovering around USD 68 per ounce.
Market participants are closely monitoring key economic indicators and speeches for potential shifts in monetary policy. The upcoming Jackson Hole speech by the U.S. Federal Reserve Chair is of particular interest. Any signals regarding the Federal Reserve’s approach to inflation and interest rates could influence the U.S. dollar and Treasury yields, thereby affecting the appeal of assets like gold.
Investors are also tracking U.S. economic data, including the July advance trade balance and weekly jobs data, for further cues on monetary policy. On the broader commodity market, crude oil prices remained under pressure, influenced by increased possibilities of the Strait of Hormuz reopening.
The Chenab Times News Desk