Gold Prices Drop Amid Profit Booking, US Dollar Strength Gold prices in New Delhi fell by Rs 600 to Rs 1,66,500 per 10 grams on Wednesday, ending a four-day rally. The decline came amid weak trends in international markets and traders booking profits after a strong multi-week uptrend. The yellow metal of 99.9 per cent purity had previously closed at Rs 1,67,100 per 10 grams. Meanwhile, silver rebounded modestly, rising Rs 500 to Rs 2,50,500 per kilogram, according to the All India Sarafa Association. Analysts attributed the gold price drop to a strengthening US dollar ahead of the US Personal Consumption Expenditures (PCE) inflation report. Akshat Siddhant, Lead Quant Analyst at Mudrex, noted that gold had reached fresh multi-month highs this year due to the US Treasury’s debt-buyback program, lower bond yields, and steady purchases by China’s central bank. However, the recent decline signaled a pause in the rally as traders adjusted positions. Global markets also saw spot gold fall USD 39.66, or nearly 1 per cent, to USD 4,619.21 per ounce, while silver dipped slightly to USD 68.50 per ounce. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, explained that gold had consolidated after five consecutive days of gains, reflecting cautious sentiment. He also mentioned that crude oil prices extended their decline due to concerns over reduced supply, with Iran and Oman pushing for a temporary opening of the Strait of Hormuz. Investors have shown increased interest in gold-backed exchange-traded funds, according to Singh. Looking ahead, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, highlighted that the US Federal Reserve’s approach to inflation and monetary policy could influence the US dollar, Treasury bond yields, and precious metals.#us_dollar #mirae_asset_sharekhan #hdfc_securities #all_india_sarafa_association #mudrex
Gold Prices Drop Rs 600 After Four-Day Rally, Silver Edges Higher Gold prices declined by Rs 600 to Rs 1,66,500 per 10 grams in Delhi on Wednesday, snapping a four-day upward trend amid profit-taking and a strengthening US dollar. The yellow metal of 99.9 per cent purity had closed at Rs 1,67,100 per 10 grams in the previous session. Silver prices rebounded modestly, rising Rs 500 to Rs 2,50,500 per kilogram (inclusive of all taxes) from Tuesday’s closing level of Rs 2.5 lakh per kg, according to the All India Sarafa Association. The decline in gold prices was attributed to traders booking profits after a sustained rally, with analysts noting that the metal’s recent gains were partly fueled by the US Treasury’s debt-buyback program, lower bond yields, and steady purchases from China’s central bank. Akshat Siddhant, Lead Quant Analyst at Mudrex, highlighted that the decline reflected a shift in investor sentiment as the US dollar strengthened ahead of the release of the US Personal Consumption Expenditures (PCE) inflation report. He emphasized that gold’s performance had been supported by a combination of monetary policy measures and geopolitical tensions, which had kept demand for safe-haven assets elevated. In global markets, spot gold prices fell by nearly 1% to USD 4,619.21 per ounce, consolidating after five consecutive days of gains. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that the decline was part of a broader correction as investors reassessed risk appetite. Meanwhile, silver prices dipped slightly to USD 68.50 per ounce, though the metal remained resilient amid continued industrial demand. The decline in gold prices coincided with broader market trends, including a drop in crude oil prices due to concerns over supply stability.#us_treasury #mirae_asset_sharekhan #hdfc_securities #all_india_sarafa_association #mudrex
