Business
Gold Falls ₹2,800 Per 10 Grams in National Capital
Gold prices in New Delhi dropped sharply by ₹2,800 per 10 grams on Tuesday as escalating tensions between United States and Iran boosted demand for the US dollar and weighed on bullion prices.
Gold prices declined sharply in the national capital on Tuesday, with the precious metal falling by ₹2,800 per 10 grams amid rising geopolitical tensions and increased investor preference for the US dollar.
According to the All India Sarafa Association, gold of 99.9 per cent purity dropped to ₹1,62,400 per 10 grams, inclusive of taxes.
The yellow metal had closed at ₹1,65,200 per 10 grams on Monday before witnessing a steep correction in the latest trading session.
Market analysts said intensifying military tensions between United States and Iran strengthened the US dollar, leading investors to shift towards dollar-denominated assets and away from precious metals.
Gold prices are highly sensitive to global geopolitical developments, currency movements and expectations regarding interest rates and monetary policy.
Despite the decline, traders continue to monitor developments in West Asia closely, as prolonged geopolitical uncertainty can still influence safe-haven demand for gold and silver in global markets.