New Delhi, Aug 13: Gold snapped a seven-session rally on Thursday, with prices declining by Rs 2,800 to Rs 1,57,000 per 10 grams in the national capital as traders booked profits after a recent surge.
The yellow metal of 99.9 per cent purity had closed at Rs 1,59,800 per 10 grams on Wednesday.
Silver also bore the brunt of the sell-off, tumbling Rs 6,000 to Rs 2,40,000 per kilogram (inclusive of all taxes), according to the All India Sarafa Association.
The white metal had settled at Rs 2,46,000 per kg in the preceding session.
Gold traded lower on Thursday, with investors booking profits as the softer US inflation outcome had already been largely priced into bullion during the recent rally, said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
The retreat was echoed in the international markets. Spot gold was trading 0.43 per cent lower at USD 4,389.67 per ounce, while spot silver declined marginally to USD 65.03 per ounce.
Spot gold was trading lower at USD 4,380 per ounce in overseas markets due to profit booking. Traders booked profits as the much-awaited US July Consumer Price Index (CPI) inflation data came in line with the forecast, said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.
Crude oil prices edged lower amid conflicting claims over the Strait of Hormuz, while the dollar index remained steady, he added.
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Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said that with the CPI trigger now behind the market, investors' attention has shifted to the US producer price index (PPI) for further clues on inflation and the Federal Reserve's policy path.
"A lower PPI reading could strengthen hopes for a more relaxed approach from the Fed and boost prices for precious metals, while a higher-than-expected result could raise worries about ongoing inflation and lead to selling," he added.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
