Silver prices plunged by Rs 21,600 to Rs 2.75 lakh per kg while gold dropped by Rs 3,200 to Rs 1.62 lakh per 10 grams in the national capital on Friday due to a strong US dollar and heavy profit-booking by investors. According to the All India Sarafa Association, gold of 99.9 per cent purity dropped by Rs 3,200, or 1.93 per cent, to Rs 1,62,800 per 10 grams (inclusive of all taxes) from Thursday’s closing level of Rs 1,66,000 per 10 grams.
Silver prices also nosedived by Rs 21,600, or 7.3 per cent, to Rs 2,75,000 per kg (inclusive of all taxes). The white metal had settled at Rs 2,96,600 per kg in the previous session.
“Precious metals came under heavy selling pressure on Friday. Persistent concerns over elevated inflation, fuelled by higher energy prices and ongoing supply chain disruptions linked to US-Iran tensions, have strengthened the case for restrictive monetary policy,” Saumil Gandhi, senior analyst (commodities) at HDFC Securities, said. This outlook pushed investors toward the dollar and US Treasury bond yields, reducing the appeal of gold, he added.
The sharp decline mirrored weakness in the overseas markets, where spot gold declined $104, or 2.24 per cent, to $4,548.46 per ounce while silver fell $5.26, or 6.31 per cent, to $78.21 per ounce. “Gold prices felt the heat as the yellow metal corrected sharply by nearly, pressured by a rise in crude oil prices and a stronger
dollar index, which weighed on bullion sentiment,” Jateen Trivedi, VP research analyst (commodity and currency) at LKP Securities, said.
