Gold staged a sharp decline in New Delhi amid profit-taking following a seven-day rally, influenced by softer US inflation data and market speculation on Federal Reserve policy cues.
Gold prices in New Delhi fell on Thursday as traders locked in profits after a seven-session run-up, with the yellow metal slipping Rs 2,800 to Rs 1,57,000 per 10 grams, according to the All India Sarafa Association. Silver also weakened sharply, dropping Rs 6,000 to Rs 2,40,000 per kilogram, reflecting a broader pause in the recent rally across precious metals.
The pullback came after softer US inflation data had already been largely absorbed by the market, analysts told PTI. Jateen Trivedi of LKP Securities said the latest consumer price figures had been priced in during the recent advance, leaving room for profit-taking. Praveen Singh of Mirae Asset ShareKhan said traders were also reacting to the fact that the July US consumer price index matched expectations.
Overseas, spot gold was lower at USD 4,389.67 per ounce, while spot silver edged down to USD 65.03 per ounce. Saumil Gandhi of HDFC Securities said investors are now looking to the US producer price index for fresh clues on inflation and the Federal Reserve’s policy path. He added that a softer reading could revive expectations of a more accommodative Fed and support bullion, while a stronger print could renew selling pressure.
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