Gold Slumps by Rs 800 Ahead of Rakshabandhan Festivities

Gold prices fell for the second straight session in New Delhi on Thursday, declining by Rs 800 to Rs 1,65,700 per 10 grams. This decline comes ahead of Rakshabandhan celebrations, which typically sees a surge in gold purchases.

The fall in gold prices can be attributed to a rebound in the US dollar and Treasury bond yields, according to analysts. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said that spot gold traded lower on Thursday as a recovery in the US dollar and Treasury yields weighed on the yellow metal following stronger-than-expected US inflation data.

Despite the decline, silver remained steady, trading at Rs 2,50,500 per kilogram. Analysts are keeping an eye on the US Federal Reserve Chair Kevin Warsh's Jackson Hole speech on Friday, which could influence the dollar and Treasury yields and affect the appeal of assets such as gold.