India's Gold Prices Plummet as Investors Take Caution Ahead of US Inflation Data
Gold prices in India's national capital declined for the third consecutive session on Wednesday, dipping by Rs 100 to reach Rs 1.58 lakh per 10 grams. The drop was attributed to subdued demand in local markets.
The 99.9% purity yellow metal had closed at Rs 1.58,100 per 10 grams in the previous session. However, silver bucked the trend and extended its gains for the second straight session, surging by Rs 2,300 to Rs 2.43 lakh per kilogram (inclusive of all taxes).
Experts attribute gold's decline within a narrow range as investors take a cautious approach ahead of US inflation data set to be released later this week. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said, 'Gold has remained within a narrow range as investors take a cautious approach ahead of important US inflation data set to be released later this week.'
Higher energy costs could add to inflationary pressures and reinforce expectations that interest rates may remain elevated, limiting the upside in bullion. Global markets saw spot gold gain USD 43.67, or 1 per cent, to USD 4,399.22 per ounce, while silver rose nearly 1 per cent to USD 66.25 per ounce.