Gold prices dropped ₹3,200 to ₹1.62 lakh per 10 grams while silver plunged ₹21,600 to ₹2.75 lakh per kg in Delhi bullion markets on Friday. According to the All India Sarafa Association, gold of 99.9 per cent purity fell by 1.93 per cent from Thursday's closing level of ₹1.66 lakh per 10 grams. Silver prices nosedived by 7.3 per cent from the previous session's settlement of ₹2.96 lakh per kg.
The sharp decline was attributed to a stronger US dollar and heavy profit-booking by investors. As reported by The Hindu BusinessLine, persistent concerns over elevated inflation, fuelled by higher energy prices and ongoing supply chain disruptions linked to US-Iran tensions, have strengthened the case for restrictive monetary policy. This outlook pushed investors toward the dollar and US Treasury bond yields, reducing the appeal of gold, according to Saumil Gandhi, Senior Analyst at HDFC Securities.
The domestic decline mirrored weakness in overseas markets, where spot gold declined USD 104, or 2.24 per cent, to USD 4,548.46 per ounce while silver fell USD 5.26, or 6.31 per cent, to USD 78.21 per ounce. According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold prices felt pressure from a rise in crude oil prices and a stronger dollar index, which weighed on bullion sentiment. Profit booking also emerged after the steep rally and elevated levels witnessed in recent sessions.
Looking ahead, markets will closely track updates from the US-China meeting, Trump's policy stance after returning to the US, and ongoing geopolitical tensions involving the US, Israel, and Iran. As reported by LKP Securities, these factors will continue to influence precious metals sentiment in the coming sessions. The current decline reflects broader market concerns about monetary policy direction and geopolitical uncertainties affecting safe-haven asset demand.
