Gold Falls ₹1,100 To ₹1.64 Lakh/10g, Silver Slips To ₹2.71 Lakh/kg

New Delhi: Gold prices fell in the national capital on Friday as traders booked profits after the recent rally in precious metal prices. According to the All India Sarafa Association, gold of 99.9 percent purity declined by Rs 1,100, or nearly 1 percent, to Rs 1,64,100 per 10 grams, including all taxes.

This is the second straight session in which gold prices have declined as investors locked in gains after prices had reached elevated levels earlier in the week.

Silver Prices Also Edge Lower

Silver prices also witnessed a decline in the domestic bullion market. The metal slipped Rs 600 to Rs 2,71,700 per kilogram, including all taxes.

Analysts said the fall in both gold and silver was mainly due to profit booking by traders who had earlier benefited from the strong rally in precious metal prices.

Strong Dollar And Rising Yields Impact Prices

Market experts said global economic factors also influenced the movement of precious metals this week.

According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, gold and silver initially opened higher earlier in the week but gradually moved lower.

He said a stronger US dollar, rising US Treasury yields, and lower expectations of interest rate cuts by the US Federal Reserve reduced the demand for precious metals.

Gandhi also noted that investors have been withdrawing money from gold-backed exchange traded funds (ETFs), which indicates softer investment demand.

ETF holdings declined by 93,479 troy ounces in the latest session, marking the fourth consecutive day of outflows, the longest streak since early February.

Global Markets Show Slight Gains

While domestic prices declined, precious metals were trading slightly higher in international markets.

Spot gold rose USD 14.70, or 0.29 percent, to USD 5,095.81 per ounce, while silver gained 1.4 percent to USD 83.40 per ounce.

Analysts said global prices were supported by rising safe-haven demand due to geopolitical tensions.

Middle East Tensions Support Safe-Haven Demand

According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, geopolitical tensions in the Middle East have increased demand for safe-haven assets like gold and silver.

Concerns grew after the Strait of Hormuz, a key global shipping route, was closed, pushing crude oil prices above USD 80 per barrel and raising fears of supply disruptions.

At the same time, the US stock market reacted negatively, with major indices such as the Dow Jones and S&P 500 witnessing declines. This further supported investor interest in precious metals.

Investors Await Key US Economic Data

Market participants are also watching important US economic indicators.

Jateen Trivedi, VP Research Analyst at LKP Securities, said investors are closely monitoring upcoming data including the US unemployment rate and non-farm payroll numbers, which are expected later in the day and could influence global market sentiment.