Gold and silver prices in Delhi declined sharply after a seven-session rally, driven by profit-taking amid softer US inflation data and shifting macroeconomic signals, affecting international bullion prices.
Gold prices in Delhi ended a seven-session run on Thursday, with traders taking profits after a steep recent climb, according to the Free Press Journal. The report said 99.9% pure gold fell by ₹2,800 to ₹1,57,000 per 10 grams, down from ₹1,59,800 in the previous session.
Silver weakened more sharply. The paper cited the All India Sarafa Association as saying the metal dropped ₹6,000 to ₹2,40,000 per kilogram, compared with ₹2,46,000 a day earlier.
Analysts said the pullback followed a market that had already absorbed softer US inflation data, reducing the immediate impact of Wednesday’s consumer price reading. Jateen Trivedi of LKP Securities said the move reflected profit booking after bullion’s strong advance, while Praveen Singh of Mirae Asset ShareKhan said investors had been waiting for confirmation from the July inflation figures and were now watching broader macro signals.
That focus is likely to shift to the US producer price index, which traders will use for clues on inflation and the Federal Reserve’s next steps. Saumil Gandhi of HDFC Securities said a weaker reading could revive expectations of a more accommodative Fed stance and support precious metals, while a hotter result could trigger further selling. The decline in Delhi also tracked softer overseas prices, with spot gold and silver both lower in international trade.
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