Business
Gold Falls Below Rs 1.62 Lakh Mark in National Capital
Gold and silver prices witnessed a sharp decline in the national capital as investors closely monitored global economic uncertainty, US-Iran geopolitical tensions, and the strengthening US dollar, which reduced demand for precious metals in domestic markets.
Gold prices in the national capital dropped sharply on Wednesday, reflecting weakness in international bullion markets and changing investor sentiment amid ongoing geopolitical tensions and a stronger US dollar.
According to the All India Sarafa Association, gold of 99.9 per cent purity declined by Rs 1,100 to Rs 1.61 lakh per 10 grams, inclusive of taxes. In the previous trading session, the precious metal had closed at Rs 1.62 lakh per 10 grams.
Market analysts attributed the fall in gold prices primarily to weak global trends and profit-booking by investors. Despite continued tensions between the United States and Iran, which generally support safe-haven assets such as gold, increased demand for the US dollar limited gains in bullion prices.
Silver prices also recorded a major decline during the session. The white metal fell Rs 3,300 to Rs 2.69 lakh per kilogram after settling at Rs 2.73 lakh per kilogram in the previous session.
Traders noted that fluctuations in international markets, currency movements, and investor expectations regarding US interest rate decisions continue to influence domestic precious metal prices. A stronger dollar often makes gold more expensive for holders of other currencies, reducing overall demand.
Experts believe that geopolitical developments in the Middle East, inflation trends, and upcoming decisions by the US Federal Reserve will remain key factors determining the direction of gold and silver prices in the coming weeks.