Gold Falls ₹800 To ₹1.65 Lakh In Delhi

Gold prices in Delhi fell by ₹800 to ₹1,65,700 per 10 grams on Thursday, marking the second consecutive day of decline. This decrease comes just a day before Rakshabandhan, a festival where gold and silver ornaments are traditionally exchanged as gifts.

The price of gold with 99.9 percent purity had settled at ₹1,66,500 per 10 grams on Wednesday, and has now lost ₹1,400 across two sessions after touching ₹1,67,100 on Tuesday.

On the other hand, silver prices remained unchanged at ₹2,50,500 per kilogram, inclusive of taxes, according to local dealers.

The decline in gold prices can be attributed to the recovery of the US dollar and Treasury bond yields following stronger-than-expected American inflation data. A stronger dollar makes bullion more expensive for buyers holding other currencies, while rising yields reduce the attraction of non-interest-bearing gold.

Globally, spot gold edged lower to $4,585.88 per ounce. Market experts believe that the inflation reading has increased expectations of a possible interest-rate increase by the US Federal Reserve.

Investors are now awaiting Federal Reserve Chair Kevin Warsh’s Jackson Hole address on Friday, which could provide indications about the central bank’s approach to inflation and borrowing costs. This, in turn, could impact the dollar, Treasury yields, and precious-metal prices.

International silver, however, performed better, gaining 0.31 percent to $68.32 per ounce. The metal hovered near $68 as investors continued seeking safe-haven assets.

In India, silver stabilised after an earlier bout of selling. Crude oil, meanwhile, remained under pressure due to the possibility of the Strait of Hormuz reopening, which could ease concerns over global energy supplies and reduce the geopolitical premium built into crude prices.

The upcoming US July advance trade balance and weekly employment data, alongside the Jackson Hole speech, may guide the next move in bullion, the dollar, and government bond yields.

The decline in gold prices ahead of Rakshabandhan may impact the traditional exchange of gold and silver ornaments between brothers and sisters during the festival.

However, the overall impact of the decline in gold prices on the Indian market remains to be seen, and will depend on various factors, including the US Federal Reserve’s monetary policy decisions and the global economic conditions.

In conclusion, the decline in gold prices and the steady silver prices come at a significant time, just ahead of Rakshabandhan, and may have implications for the traditional exchange of gifts during the festival.

The Indian market will be closely watching the developments in the global market, particularly the US Federal Reserve’s decisions, to gauge the future trend of gold and silver prices.