Gold Price Update: Gold Drops ₹600 in Delhi After Four Sessions of Gains, Silver Climbs

The price of gold fell by ₹600 in the national capital city on Wednesday to settle at ₹166,500 per 10 grams following a rise in its prices for four consecutive days. This price decrease occurred because of negative trends internationally and profit booking. The yellow metal with 99.9% purity traded at ₹167,100 per 10 grams in the previous day.

However, the prices of silver witnessed an improvement by ₹500 to ₹250,500 per kilogram. Silver ended at ₹2.5 lakh per kilogram on Tuesday. As stated by the All India Sarafa Association, this includes all kinds of taxes. Akshat Siddhanta, chief quant analyst at Mudrex, mentioned that gold prices were weaker in the domestic market because of traders booking profit. In addition to this, Siddhanta added that the decrease was also influenced by the strengthening of the US dollar before the US personal consumption expenditure inflation report. Siddhanta further added that gold has touched new multi-month highs in the year because of the US Treasury's expanding debt repurchase program, falling bond yields and purchases by China's central bank.

In the global market, spot gold fell by US$39.66, or about 1 percent, to US$4,619.21 per ounce. Silver, meanwhile, saw a slight decline to US$68.50 per ounce. Praveen Singh, head of commodities at Mirae Asset Sharekhan, said spot gold was trading around US$4,621 per ounce, down about 1 percent after five consecutive days of gains. He said that crude oil prices also continued to decline due to efforts by Iran and Oman to temporarily open the Strait of Hormuz. Singh also noted that holdings in exchange-traded funds backed by the yellow metal have increased in the past few weeks.