New Delhi: Gold prices fell for the third consecutive session on Wednesday as rising crude oil prices and weak global markets weighed on investor sentiment.
In the national capital, gold of 99.9 percent purity declined by Rs 800 to Rs 1,48,450 per 10 grams, including taxes. It had closed at Rs 1,49,250 per 10 grams on Tuesday.
Silver prices, however, remained unchanged at Rs 2,39,800 per kilogram.
Crude Rally Hits Gold
Market experts said the sharp rise in crude oil prices has increased inflation concerns across global markets.
Higher oil prices have strengthened the US dollar and pushed US Treasury bond yields higher. A stronger dollar usually makes gold more expensive for overseas buyers, reducing demand and putting pressure on prices.
According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, gold continued to weaken as global investors shifted focus away from safe-haven buying amid rising energy prices and changing market expectations.
Global Prices Also Decline
The weakness was also visible in international markets.
Spot gold fell by about 1.2% to $4,056.24 per ounce, while spot silver slipped to $58.61 per ounce.
Analysts said the fall in global prices directly affected domestic bullion rates.
US-Iran Conflict Adds Uncertainty
Fresh geopolitical tensions also influenced market sentiment.
According to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, gold came under pressure after US President Donald Trump declared that the interim peace agreement with Iran was over, raising fears of a wider conflict in West Asia.
The renewed tensions pushed crude oil prices nearly 7% higher, increasing worries that inflation could remain elevated for a longer period.
Focus On Fed Minutes
Investors are now closely watching the minutes of the US Federal Reserve's June policy meeting for signals on future interest rates.
Renisha Chainani, Head of Research at Augmont, said markets are looking for fresh clues on the US central bank's policy direction. Any indication that interest rates may stay higher for longer could continue to influence gold prices in the coming sessions.
