Gold Prices Plunge by Rs 600 on Weak Domestic Demand
Gold prices in India dropped by Rs 600 to Rs 1.55 lakh per 10 grams on Thursday due to weak domestic demand, according to local traders. This decline marks a significant drop from the previous day's closing price of Rs 1,55,600 per 10 grams.
The silver market held steady at Rs 2.42 lakh per kilogram, inclusive of all taxes. Experts attribute this stability to the weak domestic demand in gold, which outweighed the overall trend of gold prices globally.
Spot gold saw a marginal recovery in global markets, rising by USD 52.85 or 1.24% to USD 4,317.11 per ounce. Silver also gained nearly 2%, reaching USD 64.06 an ounce. However, these gains were largely attributed to the slight pullback in Treasury yields, crude oil prices, and the dollar index.
Vedika Narvekar, Research Analyst of Commodities & Currencies at Anand Rathi Share and Stock Brokers Ltd, explained that the bounce in gold prices was not driven by specific factors but rather a cooling in Treasury yields after their sharp rise on Wednesday. This pullback gave gold 'some breathing room' as investors reassessed the market.