New Delhi: Gold prices declined sharply by Rs 1,700 to settle at Rs 1.35 lakh per 10 grams in the national capital on Tuesday, snapping a four-day record rally, according to market sources.
The fall in prices came amid profit-booking by traders and a subdued trend in global markets. In the previous session, gold had surged to a record high, supported by strong demand from jewellers and investors.
Silver prices also witnessed a decline, tracking weakness in international markets and easing domestic demand. Market analysts said investors turned cautious ahead of key global economic cues, leading to a pullback in precious metals.
In the global markets, gold prices slipped as the US dollar strengthened and bond yields edged higher, reducing the appeal of the yellow metal as a safe-haven asset. Experts noted that short-term volatility is likely to persist due to geopolitical developments and expectations around interest rate movements.
Traders said that while the current dip reflects profit-taking after the recent rally, long-term fundamentals for gold remain strong, supported by central bank buying and ongoing global economic uncertainties.
Market participants are now closely watching upcoming macroeconomic data and signals from major central banks to assess the future direction of bullion prices.
