Gold prices in New Delhi have fallen for a sixth consecutive session, reaching a near three-week low as overseas markets decline and concerns over inflation and US monetary policy persist.
Gold prices in New Delhi fell for a sixth straight session on Wednesday, dropping by ₹2,100 to ₹1,56,100 per 10 grams, as weakness in overseas markets continued to weigh on the domestic market. The fall took the 99.9 per cent purity metal to a near three-week low and left it about ₹11,000 below its level on August 25, when it was quoted at ₹1,67,100 per 10 grams, according to traders and market data.
Silver also came under pressure, sliding by ₹5,000 to ₹2,35,500 per kilogram, extending its decline for a second day. Commodity analysts said the metal has been hurt not only by the broader retreat in precious metals but also by renewed inflation worries after tensions in West Asia pushed crude prices higher. Higher oil costs can feed expectations of sticky inflation and make investors less confident that central banks will move quickly to cut rates.
In global trade, spot gold was quoted higher at $4,303.12 an ounce, but analysts said the metal remained vulnerable to shifting expectations around US monetary policy. Saumil Gandhi of HDFC Securities said precious metals were under heavy selling pressure as spot gold fell to its lowest level in more than three weeks, while Praveen Singh of Mirae Asset ShareKhan pointed to lingering concern that the Federal Reserve could keep policy tighter for longer. Earlier this year, gold has repeatedly been buffeted by a firmer dollar, outflows from gold-backed exchange-traded funds and rising real yields, which reduce the appeal of non-interest-bearing bullion.
Analysts are now watching upcoming US labour market data for clues on the Fed’s next step. That uncertainty has kept traders cautious after a volatile year in which gold has suffered several sharp weekly sell-offs, even as geopolitical tensions have periodically offered support. For now, the domestic market remains focused on whether the current slide has further to run or whether bargain buying will emerge at lower levels.
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