Gold Prices Fall by Rs 600 Amid Profit Booking and Weakening Dollar
Gold prices in India fell by Rs 600 to Rs 1,66,500 per 10 grams on Wednesday, snapping a four-day winning streak. The decline was attributed to profit booking by traders after a strong multi-week rally. Akshat Siddhant, Lead Quant Analyst at Mudrex, said gold has eased in the domestic markets as traders booked profits.
The weakening of the US dollar ahead of the US Personal Consumption Expenditures (PCE) inflation report also contributed to the decline in gold prices. Spot gold fell by USD 39.66, or nearly 1%, to USD 4,619.21 per ounce. Silver rebounded modestly, rising Rs 500 to Rs 2,50,500 per kilogram from Tuesday's closing level.
The outlook for gold prices remains uncertain as investors await the US Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday. The speech could influence the US dollar and precious metals. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said any indication of the US Federal Reserve's broader approach to inflation and monetary policy could impact gold prices.