New Delhi, Aug 26: Gold prices declined by Rs 600 to Rs 1,66,500 per 10 grams in the national capital on Wednesday, snapping a four-day gaining streak amid weak trends in the international markets.
The yellow metal of 99.9 per cent purity had closed at Rs 1,67,100 per 10 grams in the preceding session.
However, silver rebounded modestly, rising Rs 500 to Rs 2,50,500 per kilogram (inclusive of all taxes) from Tuesday’s closing level of Rs 2.5 lakh per kg, according to the All India Sarafa Association.
“Gold has eased in the domestic markets as traders booked profits after a strong multi-week rally,” said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.
He attributed the decline in precious metal prices to a strengthening US dollar ahead of the US Personal Consumption Expenditures (PCE) inflation report.
“Gold has repeatedly reached fresh multi-month highs this year, supported by the US Treasury’s expanding debt-buyback program, lower bond yields and steady buying from China’s central bank,” Siddhant said.
In global markets, spot gold fell USD 39.66, or nearly 1 per cent, to USD 4,619.21 per ounce, while silver dropped marginally to USD 68.50 per ounce.
“Spot gold traded with a loss of nearly 1 per cent around USD 4,621 per ounce as it consolidated after five consecutive days of gains,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Crude oil has extended its decline on reduced supply concerns as Iran and Oman continue to push for a temporary opening of the Strait of Hormuz, he added.
Meanwhile, holdings in yellow metal-backed exchange-traded funds have surged in the last few weeks, Singh said.
On the outlook, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said any indication of the US Federal Reserve’s broader approach to inflation and monetary policy could influence the US dollar, Treasury bond yields and precious metals.
“Investors will also await the US Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium on Friday,” Gandhi added.
