Delhi Gold Drops Rs 200 to Rs 1.56 Lakh on Strong Rupee
Gold fell to Rs 1,56,400 per 10 grams in Delhi as the rupee strengthened against the US dollar.
Key points
- Delhi gold prices fell by Rs 200 to close at Rs 1,56,400 per 10 grams of 99.9 purity.
- Silver prices dropped Rs 5,000 to Rs 2.42 lakh per kilogram inclusive of all taxes.
- The rupee strengthened to 95.81 against the dollar while global gold fell 0.57 percent.
Gold prices in Delhi closed at Rs 1,56,400 per 10 grams, a drop of Rs 200 from Friday. Silver prices declined sharply by Rs 5,000 to reach Rs 2.42 lakh per kilogram.
The Indian rupee gained 15 paise to trade at 95.81 against the US dollar. This strength in the domestic currency directly increased the cost of imported bullion.
Global Factors Pressuring Precious Metals
Spot gold fell by USD 24.75 to settle at USD 4,353.48 per ounce. Silver remained flat at USD 66.27 per ounce in international markets.
Hawkish commentary from Federal Reserve officials kept yields and the dollar firm. Elevated inflation concerns also contributed to the subdued trend in global precious metals.
Oil Prices and Stock Market Gains
WTI crude oil slipped below USD 100 as investors assessed recovering Saudi shipments. Falling oil prices ease inflation pressure, which reduces the appeal of gold.
Stock markets recorded gains during the session, shifting investor interest away from safe-haven assets. These market movements further impacted the local precious metal trade.
Market Analysts Cite Competing Forces
Gaurav Garg of Lemonn noted that West Asian tensions still support precious metal demand. However, strong yields and a firm dollar currently outweigh that geopolitical demand.
Akshat Siddhant of Mudrex reported that gold trades near USD 4,350 per ounce. The decline in oil prices is a key factor easing broader inflation pressures.
