Gold Prices Drop in Delhi Amid Weak Demand and Strong Dollar
Gold prices in Delhi dropped by ₹200 per 10 grams on Tuesday, reaching ₹1.496 lakh. This decline was driven by weak retail demand during the Pitru Paksha period and a stronger US dollar. The previous day, gold was priced at ₹1.498 lakh per 10 grams.
Silver prices remained steady at ₹2.27 lakh per kilogram for the second consecutive day. Analysts attributed the drop in gold prices to a lack of demand and uncertain global market cues. Saumil Gandhi of HDFC Securities noted that traditional beliefs during Pitru Paksha discourage purchases of gold and other luxury items.
Globally, spot gold saw a slight increase to $4,149.44 per ounce. Praveen Singh of Mirae Asset Sharekhan stated that gold was trading higher due to a softer US dollar and crude oil prices, with spot gold at $4,151 per ounce. Silver remained stable at $61.01 per ounce.
Singh added that gold prices will continue to be influenced by movements in the US dollar and crude oil. He expects gold to remain range-bound in the near term, with a slight bearish trend possible. Investors' risk appetite also plays a role in gold price fluctuations.