Gold Prices Slip in India Amid Weakening Dollar, Silver Sees Modest Gain
Gold prices in India have retreated after a four-day rally, falling by Rs 600 to Rs 1,66,500 per 10 grams in New Delhi. The yellow metal had closed at Rs 1,67,100 per 10 grams the previous session.
Silver, however, edged up by Rs 500 to Rs 2,50,500 per kilogram from Tuesday's closing level of Rs 2.5 lakh per kg, according to the All India Sarafa Association.
The decline in gold prices is attributed to a strengthening US dollar ahead of the US Personal Consumption Expenditures (PCE) inflation report, said Akshat Siddhant, Lead Quant Analyst at Mudrex. He noted that gold has repeatedly reached fresh multi-month highs this year, supported by the US Treasury's expanding debt-buyback program and lower bond yields.
Crude oil prices have also declined on reduced supply concerns as Iran and Oman continue to push for a temporary opening of the Strait of Hormuz, said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan. He added that holdings in yellow metal-backed exchange-traded funds have surged in the last few weeks.