Gold and silver prices declined in the national capital on Wednesday as appreciation in the rupee, elevated crude oil prices and weak global trends dampened investor sentiment, PTI reported.
Source: PTI via The Sen Times
Gold of 99.9 per cent purity dropped Rs 1,300 to Rs 1,49,000 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association. The yellow metal — yaani about Rs 1.49 lakh for 10 grams — had closed at Rs 1,50,300 per 10 grams in the previous session.
Silver fell Rs 1,600 to Rs 2,13,400 per kilogram — yaani about Rs 2.13 lakh per kg — after remaining steady for two consecutive sessions. It had settled at Rs 2,15,000 per kg on Monday.
"Gold traded weak on Wednesday, as rupee appreciation continued to add pressure on domestic prices," said Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, adding that the overall trend remains weak amid a stronger rupee and concerns over elevated crude prices feeding inflationary pressures.
The rupee surged 48 paise to close at 94.43 (provisional) against the US dollar on Wednesday, supported by the Reserve Bank of India's intervention to contain dollar demand, PTI reported.
In global markets, spot gold traded flat at USD 4,127.68 per ounce, while silver fell 0.48 per cent to USD 57.72 per ounce. Ashish Rajodiya, Head of Commodities at PL Capital, said early hopes of an Iran peace deal had pulled oil prices down and briefly supported precious metals, but those gains faded as crude recovered.
Domestic futures told a similar story earlier in the day: MCX gold was trading down 0.42 per cent at Rs 1,45,898 per 10 grams around 11:30 am, while MCX silver was down 1.16 per cent at Rs 2,09,028 per kg, The CSR Journal reported.
Source: The CSR Journal