New Delhi: Gold prices in the national capital experienced a significant decline of Rs 1,600, settling at Rs 1.52 lakh per 10 grams on Thursday. This marks the fourth consecutive session of losses for the precious metal, influenced by a strengthening US dollar and rising crude oil prices which intensified the sell-off in the bullion market.
Information was available with The Chenab Times indicating that gold of 99.9 per cent purity depreciated by Rs 1,600 to Rs 1,52,400 per 10 grams, inclusive of all taxes. This represents a fall from the previous day’s closing rate of Rs 1.54 lakh per 10 grams, according to data from local traders.
Silver also followed a downward trend, tumbling Rs 5,000 to Rs 2.37 lakh per kilogram, inclusive of all taxes, after remaining steady for two preceding sessions. The white metal had closed at Rs 2.42 lakh per kg in the prior session.
The sustained selling pressure has pushed gold into a four-session losing streak. Traders attributed the weakness to unfavorable global market trends and profit-taking activities at elevated price levels. Silver experienced a more pronounced decline due to its higher volatility and greater exposure to industrial demand, which amplified the selling pressure.
The depreciation of the Indian rupee to 95.96 against the US dollar provided a minor cushion to domestic bullion prices, thereby limiting the extent of the fall, market participants noted.
According to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, domestic gold prices edged lower reflecting weak global cues and subdued retail demand. He highlighted that a stronger US dollar and rising Treasury yields continued to exert downward pressure on precious metals.
This pressure was also evident in international markets, where spot gold fell by approximately 1 per cent to USD 4,253.61 per ounce, while silver depreciated by 1.4 per cent to USD 63.56 per ounce. The global decline was influenced by a spike in crude oil prices, which acted as another headwind for precious metals.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, stated that gold slipped below USD 4,274 an ounce in global markets as crude oil surged on supply concerns originating from West Asia. He added that increasing US Treasury yields and the dollar index, which moved above the 101 mark nearing a two-month high, further intensified the pressure on precious metals.
Market participants are currently factoring in a 70 per cent probability of a Federal Reserve rate hike at its upcoming October meeting, Singh added. Geopolitical risks also remained a significant factor influencing market sentiment.
Iranian President Masoud Pezeshkian addressed the UN General Assembly, stating that Tehran was a victim of militancy and would not yield. The British military’s UK Maritime Trade Operations centre reported that a cargo vessel was struck by an unknown projectile in the Strait of Hormuz on Wednesday, escalating concerns over the ongoing crisis in the West Asia region.
The rising uncertainties surrounding the opening of the Hormuz route propelled Brent crude oil to USD 106 per barrel, analysts observed. They cautioned that elevated energy prices could potentially fuel inflation, thereby reducing the maneuverability of global central banks in easing monetary policies. Investors were also closely monitoring a high-stakes meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the White House, with discussions anticipated to cover trade, artificial intelligence, and the situation in Iran.
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The Chenab Times News Desk
