Delhi Gold Prices Decline on Weak Demand and Strong Dollar
Gold prices in Delhi dropped by Rs 200 per 10 grams on Tuesday, reaching Rs 1,49,600. The decline was driven by weak retail demand, particularly during the Pitru Paksha period, when consumers typically avoid making auspicious purchases. The strength of the US dollar also contributed to the price reduction.
Silver prices, however, remained stable for the second consecutive day, holding at Rs 2.27 lakh per kilogram. Analysts attribute the steady performance of silver to its lower volatility compared to gold in the current market conditions.
Experts suggest that gold prices are likely to remain range-bound in the near term, with a slight bearish outlook. This forecast is influenced by fluctuations in oil prices and the US dollar's strength. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, noted that global market cues and subdued retail demand during Pitru Paksha have pressured gold prices domestically.
Globally, spot gold saw a slight increase to USD 4,151 per ounce, while silver remained flat at USD 61.01 an ounce. Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, highlighted that gold will continue to react to movements in oil and the US dollar, which are key factors in its near-term performance.