Silver prices declined by Rs 7,800 to Rs 2.43 lakh per kilogram in the national capital on Thursday while gold fell to Rs 1.54 lakh per 10 grams as investors booked profits amid concerns over the durability of the fragile ceasefire in West Asia.
According to the All India Sarafa Association, the white metal depreciated by Rs 7,800, or 3.10 per cent, to Rs 2,43,200 per kg (inclusive of all taxes) from Wednesday's closing level of Rs 2,51,000 per kg. Gold of 99.9 per cent purity also decreased by Rs 1,500, or nearly 1 per cent, to Rs 1,54,900 per 10 grams (inclusive of all taxes). The yellow metal had finished at Rs 1,56,400 per 10 grams in the previous market session.
Analysts said precious metals witnessed selling pressure as uncertainty around the ceasefire between the US and Iran weighed on investors’ sentiment. Gold prices declined on Thursday, reversing most of the previous session's gains as investors reassessed the fragile ceasefire in West Asia.
The ongoing sporadic fighting, uncertainty over the reopening of the Strait of Hormuz, and reports of halted tanker movements alongside the alleged ceasefire breaches weighed on market sentiment. Persistent doubts over the durability of the two-week truce have revived concerns about elevated energy prices and inflation pressures.
In the global markets, spot gold went up by USD 21.28, or 0.45 per cent, to USD 4,740.63 per ounce while silver was trading marginally higher at USD 74.12 per ounce. Gold has extended its gains to the fourth straight day on dollar weakness.
However, the US-Iran ceasefire appeared fragile amid reports of continued fighting in Lebanon and uncertainty surrounding the Strait of Hormuz. Iran has also suggested alternative routes, citing risks of mines in the main shipping zone, while crude oil prices are attempting to stabilise, limiting recovery in commodities and risk assets.
Gold is trading around USD 4,730 per ounce and is likely to consolidate ahead of the crucial US Consumer Price Index (CPI) report for March scheduled to be released on Friday. Gold prices in overseas trade could approach USD 5,000 per ounce in the near term.
Also read: Silver declines ₹ 2,000, gold declines by ₹ 600
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