Indian Gold Prices Plunge Rs 900 Amid Weak Global Cues

Gold prices in India dropped by Rs 900 to reach Rs 1.54 lakh per 10 grams on Wednesday, as weak global cues and a stronger US dollar weighed on investor sentiment.

The yellow metal of 99.9% purity had closed at Rs 1,54,900 per 10 grams on Tuesday. Silver, however, remained unchanged for the second straight session at Rs 2.42 lakh per kilogram, inclusive of all taxes, according to local traders.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, attributed the decline in gold prices to weak global trends. He noted that the dollar index rose towards 100.85, adding further pressure on bullion.

Akshat Garg, Head of Research & Product at Choice Wealth, pointed out that domestic gold prices have gained around 60% in one year, driven by a global rally, a depreciating rupee, and an increase in import duty from 6 to 15%. He noted that consumers are now opting for lighter jewellery, exchanging old pieces, and moving investment money into coins, digital gold, and ETFs.