Gold prices slumped by Rs 4,300 to Rs 1.56 lakh per 10 grams while silver crashed by Rs 10,000 to Rs 2.45 lakh per kg in the national capital on Wednesday as a fresh jump in crude oil rates and a strong US dollar weakened demand for the precious metals.
According to local marketmen, gold of 99.9 per cent purity depreciated by Rs 4,300, or nearly 3 per cent, to Rs 1,56,000 per 10 grams (inclusive of all taxes) against the last close of Rs 1,60,300 per 10 grams. Silver prices plunged by Rs 10,000, or 4 per cent, to Rs 2,45,700 per kg (inclusive of all taxes) from the previous closing level of Rs 2,55,700 per kg.
Gold prices staged a sharp reversal on Wednesday due to a fresh escalation in US-Iran geopolitical tensions that sent crude oil surging past USD 90 per barrel and strengthened the dollar, Rajkumar Subramanian, Head of Product & Family Office, PL Wealth, said. He said that a spike in energy prices has rekindled worries over sticky inflation and a prolonged period of elevated interest rates, reducing the attractiveness of precious metals.
In the international markets, spot gold declined by USD 90.53, or 2.13 per cent, to USD 4,168.99 per ounce and silver traded 2.24 per cent lower at USD 63.87 per ounce.
“Gold and silver prices dropped in the overseas markets. The pullback in both precious metals was driven by a stronger dollar and rising US Treasury bond yields, which dampened the appeal of these bullion amidst ongoing geopolitical tensions and inflation concerns,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
Also read: Gold rises ₹1,300, silver slumps ₹5,000
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