Gold Drops To Nearly Rs 1 Lakh Per 10 grams; Silver Falls Rs 1,500
In the local market, gold of 99.5% purity slipped Rs 350 to Rs 99,700 per 10 grams (inclusive of all taxes) on Wednesday.
Gold prices dropped Rs 400 to Rs 1,00,020 per 10 grams in the national capital on Wednesday due to continuous selling by stockists, according to the All India Sarafa Association.
The precious metal of 99.9% purity had settled at Rs 1,00,420 per 10 grams in the previous market close.
In the local market, gold of 99.5% purity slipped Rs 350 to Rs 99,700 per 10 grams (inclusive of all taxes) on Wednesday. It had closed at Rs 1,00,050 per 10 grams on Tuesday.
"Gold prices extended losses on Wednesday as the US dollar continued to trade with minimal gains, surging to a one-week high. A decline in the geopolitical risk premium followed a positive outcome from President Donald Trump's meetings with Vladimir Putin, Volodymyr Zelenskyy, and European leaders.
This development raised hopes for a potential resolution to the ongoing conflict, which appears to be the leading factor in the decline in gold prices in recent times," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.
Additionally, silver prices plunged Rs 1,500 to Rs 1,12,500 per kilogram (inclusive of all taxes) on Wednesday. The white metal had ended at Rs 1,14,000 per kg on Tuesday.
In the overseas markets, spot gold was trading marginally higher at $3,326.04 per ounce.
"Gold prices inched lower to their lowest level in nearly three weeks as the dollar strengthened, while investors awaited US Federal Reserve Chair Jerome Powell's last speech at the Jackson Hole symposium on Friday.
Meanwhile, the US dollar index climbed to its highest level in more than a week and USD/INR fell at 87 level, weighing further on domestic prices," Manav Modi, Analyst, Precious Metal Research, Motilal Oswal Financial Services, said.
However, spot silver was trading at $37.07 per ounce, down by nearly 1% in the global markets.
Investors will closely watch Federal Reserve's meeting minutes to be released later in the day, which is anticipated to offer further insights into the central bank's monetary policy stance and bullion price trajectory, Modi added.
