Gold Prices Plummet Ahead of Rakshabandhan Amid Dollar Rally

Gold prices in India's national capital dropped by Rs 800 to reach Rs 1,65,700 per 10 grams on Thursday, marking a second consecutive session of decline. The decrease comes ahead of the Rakshabandhan festival, a period traditionally associated with increased consumer spending on gifts and jewelry.

The recent dip in gold prices is attributed to a combination of factors, including a rebound in the U.S. dollar and an increase in Treasury bond yields. Spot gold traded lower as a recovery in the U.S. dollar and Treasury yields exerted downward pressure on the precious metal, following stronger-than-expected U.S. inflation data.

Silver prices, however, remained unchanged at Rs 2,50,500 per kilogram, inclusive of all applicable taxes, according to local traders. Market participants are closely monitoring key economic indicators and speeches for potential shifts in monetary policy, particularly the upcoming Jackson Hole speech by the U.S. Federal Reserve Chair.