Silver prices saw a sharp decline of Rs 6,000 to Rs 2.56 lakh per kilogram in the national capital on Wednesday, while gold prices fell by Rs 1,000 to Rs 1.60 lakh per 10 grams, reflecting weak domestic sentiment, according to the All-India Sarafa Association.
The white metal dropped Rs 6,000, or 2.28 per cent, to Rs 2,56,500 per kg (inclusive of all taxes), compared to Tuesday’s closing level of Rs 2,62,500 per kg.
In the bullion segment, gold of 99.9 per cent purity slipped Rs 1,000, or 0.62 per cent, to Rs 1,60,300 per 10 grams (inclusive of all taxes). In the previous session, the yellow metal had settled at Rs 1,61,300 per 10 grams after gaining Rs 1,050.
Market experts attributed the fall in gold prices to profit booking by traders, coupled with subdued physical demand. Dilip Parmar, Senior Research Analyst at HDFC Securities, noted that these factors weighed on prices during the session.
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In the global market, however, trends were mixed. Spot silver was trading 0.79 per cent higher at USD 79.92 per ounce, while gold declined by USD 16.10, or 0.32 per cent, to USD 4,989.65 per ounce.
According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, precious metals showed divergent movements on Wednesday, with gold hovering near USD 4,990 per ounce while silver edged higher to around USD 79.70 per ounce.
He added that the recent volatility in bullion prices is largely driven by investor sentiment ahead of the upcoming policy decision by the US Federal Reserve. The uncertainty has led to a cautious approach in the market, particularly amid inflationary pressures linked to elevated oil prices due to geopolitical tensions in West Asia.
Investors are now closely watching the outcome of the US Federal Reserve’s policy meeting, as its stance on interest rates is expected to play a key role in shaping the outlook for gold and silver prices in the near term.
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