New Delhi, Sep 24 (PTI) Gold prices declined Rs 1,600 to Rs 1.52 lakh per 10 grams in the national capital on Thursday, extending the losing streak for the fourth consecutive session, as the rising US dollar and higher crude oil prices weighed on the precious metal.
The yellow metal of 99.9 per cent purity depreciated by Rs 1,600 to Rs 1,52,400 per 10 grams, inclusive of all taxes, from Wednesday’s closing level of Rs 1.54 lakh per 10 grams, according to local traders.
Silver, meanwhile, saw a downward momentum after remaining unchanged for the past two sessions, tumbling Rs 5,000 to Rs 2.37 lakh per kilogram (inclusive of all taxes). The white metal had settled at Rs 2.42 lakh per kg in the previous session.
The continued selloff in gold pushed the metal deeper into a four-session decline, with traders attributing the weakness to weak global trends and profit-booking at elevated levels.
Silver took a bigger hit as its greater volatility and exposure to industrial demand amplified the selling pressure, ending the day well below its previous close, traders said.
The rupee’s slide to 95.96 against the US dollar offered some cushion to domestic bullion prices, limiting the extent of the decline, they added.
According to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, domestic gold prices edged lower amid weak global cues and subdued retail demand.
He noted that a stronger US dollar and rising Treasury yields continued to weigh on precious metals.
The pressure was equally visible in the overseas markets, where spot gold fell USD 33.74, or nearly 1 per cent, to USD 4,253.61 per ounce, while silver depreciated by 1.4 per cent to USD 63.56 an ounce.
A spike in crude oil prices turned into another headwind for the precious metals.
“The metal has slipped below USD 4,274 an ounce in global markets as crude oil leapt higher on supply concerns from West Asia,” said Praveen Singh, Head of Commodities at Mirae Asset Sharekhan.
Rising US Treasury yields and the dollar index moving above the 101 mark, close to a two-month high, further intensified pressure on precious metals, he said.
Market participants are now pricing in a 70 per cent probability of a Federal Reserve rate hike at its October meeting, Singh added.
Meanwhile, geopolitical risks remained firmly in focus.
Iranian President Masoud Pezeshkian told the UN General Assembly that Tehran was a victim of terrorism and would not surrender.
The British military’s UK Maritime Trade Operations centre said a cargo vessel was struck by an unknown projectile in the Strait of Hormuz on Wednesday, intensifying the concerns over the crisis in the West Asia region.
The rising uncertainties over the opening of the Hormuz route propelled Brent crude to USD 106 per barrel, analysts said, cautioning that higher energy prices could fuel inflation and leave global central banks with less room to ease monetary policy.
Investors were also looking toward a high-stakes meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the White House, with trade, AI and the Iran war expected to figure in the talks.
