Gold Prices Plummet ₹1,600 as Strong Dollar and Crude Oil Weigh on Bullion
Gold prices in India have been under pressure due to a stronger US dollar and rising crude oil prices. On Thursday, gold fell by ₹1,600 to ₹1.52 lakh per 10 grams in Delhi, extending its losses for the fourth consecutive session.
This decline comes as global cues turned weak and traders opted for profit-booking after gold's strong run. The stronger US dollar and higher US Treasury yields have reduced demand for bullion, which does not generate interest income.
The dollar index moved above 101, approaching a two-month high, while higher Treasury yields added further pressure on precious metals. Additionally, the rupee's decline to 95.96 against the US dollar provided some support to domestic gold prices and limited the fall.
International markets also saw a decline in gold prices, with spot gold falling $33.74, or nearly 1%, to $4,253.61 an ounce. Silver declined 1.4% to $63.56 an ounce due to rising crude oil prices, which added another source of pressure.
Analysts cited concerns over oil supplies from West Asia, with higher energy prices potentially adding to inflationary pressures and limiting the scope for central banks to ease monetary policy.