Gold Plummets as Safe-Haven Appeal Eclipses Global Rally Amid Strong Equities and Fed Outlook
Precious Metals Decline on Domestic Strength and Dollar Rally
Gold prices fell for the third consecutive session, sliding by ₹960 to stand at ₹1,53,440 per 10 grams in the national capital on Thursday. This decline followed a closing price of ₹1,54,400 per 10 grams the previous day.Silver also faced significant selling pressure, sinking by ₹6,660 to reach ₹2,48,740 per kilogram (inclusive of all taxes). The white metal had traded at ₹2,55,400 per kg in the preceding session.
Market Analysts Cite Domestic Equities and Rupee Strength
The decline in bullion prices was attributed by analysts to the resilience seen in domestic equities markets. Furthermore, the appreciation of the rupee against the US dollar prompted investors to rotate away from precious metals, despite a modest uptick observed in global prices.Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold witnessed sharp weakness after the Federal Reserve policy announcement. He pointed out that comments from new Fed Chair Kevin Warsh suggested the possibility of one interest rate hike by 2026 if the US economy remains resilient.
Geopolitical Progress Provides Global Bullion Support
Globally, precious metals received a boost following developments toward an interim peace agreement between the United States and Iran. The digital signing of a memorandum of understanding aimed to end hostilities and establish a negotiation framework for Iran's nuclear program was reported.Saumil Gandhi, Senior Analyst at HDFC Securities, stated that progress towards this peace deal has helped ease geopolitical risks and inflation concerns, offering some support to bullion prices globally.
Global Spot Prices vs Domestic Trends
On the global front, spot gold saw a marginal rise, reaching USD 4,266.47 per ounce. Silver also gained 0.38 percent, settling at USD 68.17 per ounce. This international movement occurred concurrently with domestic selling pressure and the decline of both precious metals in India.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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