Gold Prices Plummet in India Ahead of Rakshabandhan Celebrations

Gold prices in India have fallen by Rs 800 to Rs 1,65,700 per 10 grams in the national capital on Thursday, marking a second consecutive decline. This comes ahead of Rakshabandhan celebrations, when consumers traditionally step up purchases of gifts and jewellery.

The price drop is attributed to a rebound in the US dollar and Treasury bond yields, which weigh on gold prices after stronger-than-expected US inflation data. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, notes that spot gold traded lower as a recovery in the US dollar and Treasury yields affected the yellow metal.

Gold declined Rs 1,400 over the last two trading sessions, touching a low of Rs 1,67,100 per 10 grams on Tuesday. Silver prices remained unchanged at Rs 2,50,500 per kilogram, according to local traders.