Gold Falls ₹150 To ₹1,50,650, Silver Tumbles ₹5,000 To ₹2,40,000 On Stronger US Dollar

New Delhi: Gold and silver prices weakened in the domestic market on Monday as a stronger US dollar and softer global bullion prices reduced investor interest in precious metals.

According to local market dealers, gold of 99.9 percent purity slipped Rs 150 to Rs 1,50,650 per 10 grams in the national capital. In the previous trading session, the precious metal had settled at Rs 1,50,800 per 10 grams.

Silver witnessed a sharper correction. The white metal fell Rs 5,000 to Rs 2,40,000 per kilogram (inclusive of all taxes), ending its four-day winning streak. It had closed at Rs 2,45,000 per kg on Friday.

Strong dollar weighs on prices

Market experts said the main reason behind the fall was the strengthening of the US dollar, which usually makes gold more expensive for buyers using other currencies. This often reduces global demand for bullion and puts pressure on prices.

Investors also remained cautious ahead of important economic data from the United States, which could influence the US Federal Reserve's next interest rate decision.

Global market remains under pressure

In the international market, spot gold eased to around USD 4,160.60 per ounce, while spot silver declined to USD 62.24 per ounce.

According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, gold prices remained under pressure as investors closely watched developments in Washington's relations with Tehran while awaiting key US inflation-related data.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said overseas gold prices slipped as traders factored in a stronger US dollar and continued expectations that the Federal Reserve may keep interest rates elevated.

Market outlook

Analysts believe that the precious metal is expected to maintain a positive bias on optimism over easing inflation and weak US jobs data.

However, expectations that the Fed could keep interest rates elevated for longer are likely to limit any sharp upside in prices, he added.