Gold Prices Plummet in India Amid Profit-Booking and Weak Global Cues
Gold prices in India's national capital fell for the second straight session on Friday, dropping Rs 800 to Rs 1,56,200 per 10 grams. This decline was attributed to profit-booking and weak global cues, which outweighed any support from softer US producer-price data. The yellow metal of 99.9% purity had closed at Rs 1,57,000 per 10 grams on Thursday.
Silver, however, remained unchanged at Rs 2,40,000 per kilogram, according to local traders. Analysts pointed out that gold pulled back amid weaker global cues, with spot yellow metal edging lower despite softer-than-expected US producer-price data. The decline was largely driven by profit-taking after the recent rally, while investors remained cautious about adding fresh positions at elevated levels.
On the international markets, spot gold was trading marginally lower to $4,351.01 per ounce, while silver rose 0.33% to $64.68 per ounce. Crude oil prices rebounded on Friday as the US prepared more economic measures against Iran to get the Strait of Hormuz open.
Analysts noted that gold extended its decline to test support around $4,300 due to profit booking and tentative selling as oil prices recover.