Business
Precious Metals Witness Heavy Selling Amid Changing Market Sentiment
Precious metal prices witnessed a sharp decline in the national capital on Wednesday, with gold falling nearly 3 per cent and silver dropping 4 per cent. Rising crude oil prices and a strengthening US dollar dampened investor appetite for bullion.
Gold and silver prices witnessed a steep correction in the national capital on Wednesday as a stronger US dollar and a fresh surge in global crude oil prices weighed heavily on demand for precious metals.
According to local market participants, Gold of 99.9 per cent purity declined by ₹4,300, or nearly 3 per cent, to ₹1,56,000 per 10 grams (inclusive of all taxes), compared to its previous closing price of ₹1,60,300 per 10 grams.
Similarly, Silver prices plunged by ₹10,000, or approximately 4 per cent, to ₹2,45,700 per kilogram (inclusive of all taxes), down from the earlier closing level of ₹2,55,700 per kilogram.
Price Movement at a Glance
| Commodity | Previous Close | Current Price | Change |
|---|---|---|---|
| Gold (99.9% purity) | ₹1,60,300/10 gm | ₹1,56,000/10 gm | ▼ ₹4,300 |
| Silver | ₹2,55,700/kg | ₹2,45,700/kg | ▼ ₹10,000 |
Market experts attributed the sharp decline to a combination of global factors.
A strengthening US dollar tends to make dollar-denominated assets such as gold and silver more expensive for holders of other currencies, thereby reducing international demand. Additionally, the recent spike in crude oil prices has heightened concerns about inflationary pressures and the possibility of tighter monetary conditions globally.
The movement also reflects shifting investor sentiment, with some participants opting for profit-booking after the strong rally witnessed in precious metals in recent months.
Bullion traders noted that the correction was broad-based and aligned with trends observed in international markets, where precious metals came under pressure amid changing expectations regarding global interest rates and economic conditions.
Despite the decline, analysts pointed out that gold continues to be viewed as a long-term hedge against uncertainty and inflation. However, near-term price movements are likely to remain sensitive to developments in the energy market, the trajectory of the US dollar, and signals from major central banks, particularly the Federal Reserve System.
Investors and consumers are expected to closely monitor upcoming economic data releases and geopolitical developments, which could influence the direction of bullion prices in the weeks ahead.
