Gold prices in the national capital fell ₹400 to ₹1,00,020 per 10 gram on Wednesday due to continued selling by stockists, according to the All India Sarafa Association.
The precious metal of 99.9% purity had closed at ₹1,00,420 per 10 gram at the previous market close.
In the local market, gold of 99.5% purity fell ₹350 to ₹99,700 per 10 gram (inclusive of all taxes) on Wednesday. It had closed at ₹1,00,050 per 10 gram on Tuesday.
Gold prices continued to fall on Wednesday as the US dollar rose marginally to a one-week high. Geopolitical risk premium declined following positive outcomes of President Donald Trump’s meetings with Vladimir Putin, Volodymyr Zelensky and European leaders.
“These developments have raised hopes of a possible resolution of the ongoing conflict, which appears to be the main reason for the fall in gold prices in recent days,” said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.
Moreover, silver prices fell by ₹1,500 to ₹1,12,500 per kg (inclusive of all taxes) on Wednesday. The white metal had closed at ₹1,14,000 per kg on Tuesday.
In overseas markets, spot gold was trading marginally higher at $3,326.04 an ounce.
Gold prices fell to a nearly three-week low as the dollar strengthened, while investors awaited US Federal Reserve Chair Jerome Powell’s final speech at the Jackson Hole Symposium on Friday.
Meanwhile, the US dollar index hit a more than a week high and the dollar/rupee fell to 87, putting further pressure on domestic prices, said Manav Modi, analyst, Precious Metals Research at Motilal Oswal Financial Services.
However, spot silver was down nearly 1% at $37.07 an ounce in global markets.
Modi said investors will keep a close eye on the Federal Reserve meeting minutes to be released later in the day, which is expected to provide more information on the central bank’s monetary policy stance and the direction of bullion prices.
