Gold Prices Plummet to Three-Week Low in India Amid Inflation Worries
Gold prices plummeted to a three-week low in India after six consecutive sessions of decline. The precious metal dropped Rs 2,100 to Rs 1,56,100 per 10 grams on Wednesday, according to domestic market data.
The downward trend was driven by inflation worries and expectations of tighter US monetary policy, said Saumil Gandhi, Senior Commodities Analyst at HDFC Securities. Spot gold touched its lowest level in more than three weeks before recovering.
Silver prices also declined for the second straight session, plunging Rs 5,000 to a two-week low of Rs 2,35,500 per kilogram, including taxes.
The decline was attributed to escalating conflict in West Asia, which drove crude oil higher and revived inflation concerns, said Aamir Makda of Choice Broking.