Delhi gold prices drop as dollar strengthens and demand wanes

Gold prices in New Delhi dropped on Tuesday, driven by weak retail demand and a strong US dollar. According to local traders, gold of 99.9 percent purity fell by Rs 200 to Rs 1,49,600 per 10 grams, down from Rs 1,49,800 in the previous session. The decline was attributed to subdued consumer and jeweller demand, particularly during the Pitru Paksha period, when buyers traditionally avoid purchasing auspicious items like gold.

Meanwhile, silver prices remained steady for the second consecutive day at Rs 2.27 lakh per kilogram, inclusive of taxes. Analysts noted that the domestic gold market was also influenced by weak global cues and limited retail activity during this inauspicious time.

Internationally, spot gold saw marginal gains, trading at USD 4,149.44 per ounce, while silver held nearly flat at USD 61.01 per ounce. Analysts suggested that the easing of US dollar and crude oil prices contributed to the slight uptick in global gold prices.

Looking ahead, experts believe gold prices will continue to be influenced by movements in crude oil and the US dollar. A stronger dollar typically makes gold more expensive for buyers using other currencies, potentially dampening demand. For domestic markets, factors like international gold prices, the rupee-dollar exchange rate, and a rebound in physical demand will be critical in shaping future price movements.