Gold, Silver Prices Plummet in India Amid Domestic Selling Pressure
India's gold and silver markets took a hit on Friday as prices plummeted due to domestic selling pressure. Gold, a popular investment choice for many Indians, dropped ₹2,700 to ₹1.55 lakh per 10 grams while silver tumbled by ₹10,000 to ₹2.34 lakh per kg. This decline comes despite gains in global markets where spot gold rose $49.82 or 1.15% to $4,366.58 per ounce and silver gained 2% to $64.77 per ounce.
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, attributed the sharp correction in domestic bullion prices to selling pressure in the local market after a recent rally. He noted that gold prices in the overseas trade had recovered slightly but remained under pressure and were on track for a third consecutive weekly decline.
The elevated crude oil prices have revived inflation concerns, while higher Treasury yields and rising rate-hike expectations continue to weigh on assets such as gold, Gandhi added. This has led to a decline in gold prices in India, which are now at ₹1.55 lakh per 10 grams for 99.9% purity.