New Delhi: Gold and silver prices witnessed a sharp decline in the national capital on Thursday as investors booked profits after the recent rally in bullion markets.
According to the All India Sarafa Association, gold prices fell by Rs 7,600 per 10 grams, while silver prices dropped sharply by Rs 27,700 per kilogram. The fall came after strong gains in previous trading sessions, which encouraged many investors to sell and secure profits.
Bullion markets had remained closed on Tuesday and Wednesday due to the Holi festival, and trading resumed with heavy volatility.
Silver Sees Bigger Decline
Silver witnessed a much steeper fall compared to gold. The price of silver dropped by Rs 27,700, or 9.23 per cent, bringing it down to Rs 2,72,300 per kilogram (inclusive of taxes).
Market experts said silver prices were highly volatile because of two opposing factors. On one hand, geopolitical tensions involving the US, Israel and Iran increased demand for safe-haven assets, pushing prices higher earlier.
However, once prices reached high levels, investors started profit booking, which triggered the sharp decline.
Gold Drops On Weak Global Signals
Gold of 99.9 per cent purity fell by Rs 7,600, or about 4.4 per cent, to Rs 1,65,200 per 10 grams (inclusive of taxes). In the previous trading session, gold had settled at Rs 1,72,800 per 10 grams.
Analysts said that weak global cues and a stronger Indian rupee also weighed on domestic gold prices.
When the rupee strengthens against the US dollar, gold becomes relatively cheaper to import, which can reduce domestic price pressure.
Global Bullion Prices Show Mixed Trend
In international markets, gold and silver showed a slightly different trend.
Spot silver was trading at around USD 84.11 per ounce, while gold rose slightly by USD 12.60, or 0.25 per cent, to USD 5,153.91 per ounce.
Experts say global gold prices are currently influenced by two major factors — strong US economic data and ongoing geopolitical tensions.
US Economic Data To Decide Next Trend
Market participants are now closely watching key economic data from the United States.
Important indicators such as initial jobless claims, along with non-farm payroll and unemployment figures, will be released soon. These numbers could influence expectations about the US Federal Reserve’s future interest rate decisions.
If interest rate expectations change, it could significantly impact global gold prices and determine the next direction for bullion markets.
