Gold Falls Ahead of Rakshabandhan, US Dollar Rebound Cited
New Delhi - Gold prices fell for the second consecutive session, declining by Rs 800 to Rs 1,65,700 per 10 grams in the national capital on Thursday. The decline comes ahead of Rakshabandhan celebrations, when consumers traditionally step up purchases of gifts and jewelry.
Analysts said gold prices also fell due to a rebound in the US dollar and Treasury bond yields. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, attributed the decline to stronger-than-expected US inflation data, which led to a recovery in the US dollar and Treasury yields.
The yellow metal of 99.9 per cent purity had closed at Rs 1,66,500 per 10 grams on Wednesday. However, silver remained unchanged at Rs 2,50,500 per kilogram (inclusive of all taxes), according to local traders.
Market participants are also keeping an eye on the US Federal Reserve Chair Kevin Warsh's Jackson Hole speech on Friday, which could influence the dollar and Treasury yields. Globally, spot gold slipped marginally to trade at USD 4,585.88 per ounce.