Gold Prices Plummet in India as US Dollar Regains Strength
Gold prices plummeted in India on Friday, marking their third consecutive day of decline. The precious metal dropped by Rs 3,300 to Rs 1.62 lakh per 10 grams in New Delhi, with its value now down nearly 3% from August 25's high of Rs 1,67,100 per 10 grams.
The slide is attributed to the US dollar regaining strength above the 99.15 level and traders booking profits after a recent rally. The domestic bullion market also faced pressure due to reports of customs duty cuts by the central government amid rising smuggling activity.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold prices remained volatile this week, with investors awaiting US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium. Warsh needs to assuage inflationary concerns amid elevated yields, or the dollar could come under pressure and potentially boost bullion prices.