Gold Prices Plummet by Rs 600 as Weak Domestic Demand Takes Hold

Gold prices in India dropped by Rs 600 to Rs 1.55 lakh per 10 grams on Thursday, weighed down by weak domestic demand.

The metal's value had settled at Rs 1,55,600 per 10 grams the previous day.

Silver prices, however, remained stable at Rs 2.42 lakh per kilogram, including taxes, according to local traders.

Analysts attributed gold's decline to weak demand in the domestic market.

'Gold edged lower on Thursday, tracking overnight weakness in international markets after the Federal Reserve delivered a hawkish policy message,' said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

The US Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75-4 per cent, marking its first-rate increase in three years.