Gold Plunges by Rs 700 in Delhi as Subdued Demand Slashes Silver Prices Amid Inflation Jitters
Domestic Precious Metal Market Correction
The domestic bullion market witnessed a significant sell-off on Tuesday, with gold and silver prices falling due to subdued demand. The yellow metal of 99.9 per cent purity dropped by Rs 700, trading at ₹1,46,300 per 10 grams (inclusive of all taxes). This represents a decline from Monday's closing level of ₹1,47,000 per 10 grams.Silver experienced an even sharper correction, tumbling by Rs 8,900. According to the All India Sarafa Association, silver now stands at ₹2,26,100 per kilogram (inclusive of all taxes). This price decrease came from a preceding close of ₹2,35,000 per kg.
Demand Sluggishness Weighs on Bullion Prices
Traders reported that sluggish offtake across key sectors was the primary pressure point for precious metals domestically. Both industrial users and jewellers showed reduced activity in their purchases. This domestic slowdown weighed heavily on the prices despite relatively resilient trends seen in international markets.Global Metal Trends and International Market Outlook
International market movements provided some stability, though this was not enough to reverse domestic losses. Spot gold managed to gain marginally, trading at USD 4,020.13 per ounce globally. Meanwhile, silver climbed nearly one per cent, reaching USD 58.06 per ounce.Analysts Pinpoint Inflation and Fed Policy as Key Risks
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, provided insights into the limited recovery seen on Tuesday. He stated that bullion attempted to recover from Monday's steep sell-off, yet gains were constrained by several global economic factors. Elevated crude oil prices and revived inflation concerns are noted pressures.The analyst also reinforced the expectation that the Federal Reserve may maintain a hawkish monetary policy stance, contributing to market caution.
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