Gold Prices Plummet Rs 2,800 as Investors Book Profits
Gold prices in India's national capital snapped a seven-session rally on Thursday, plummeting by Rs 2,800 to Rs 1,57,000 per 10 grams. The yellow metal of 99.9 percent purity had closed at Rs 1,59,800 per 10 grams the previous day.
Silver also bore the brunt of the sell-off, tumbling by Rs 6,000 to Rs 2,40,000 per kilogram (inclusive of all taxes), according to the All India Sarafa Association. The white metal had settled at Rs 2,46,000 per kg in the preceding session.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, attributed the decline to investors booking profits as the softer US inflation outcome was already priced into bullion during the recent rally. The retreat was also seen in international markets, with spot gold trading 0.43 percent lower at USD 4,389.67 per ounce.
The much-awaited US July Consumer Price Index (CPI) inflation data came in line with the forecast, leading traders to book profits as the 'CPI trigger now behind the market', according to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.