New Delhi: Gold prices fell by ₹1,000 to ₹1,23,400 per 10 grams in the national capital on Thursday, pressured by a stronger dollar after the US Federal Reserve signaled a slower pace of rate cuts and optimism over US-China trade progress.
According to the All India Sarafa Association, gold of 99.5% purity declined by ₹1,000 to ₹1,22,800 per 10 grams (inclusive of taxes) from Wednesday’s close of ₹1,23,800. Meanwhile, 99.9% purity gold had settled at ₹1,24,400 per 10 grams in the previous session.
“Gold prices slipped following hawkish comments from Federal Reserve Chair Jerome Powell after the policy announcement,” said Saumil Gandhi, Senior Analyst–Commodities at HDFC Securities. “The Fed cut rates by 25 basis points as expected but indicated that market hopes for another rate cut in December may be premature.”
The remarks boosted US bond yields and strengthened the dollar, exerting pressure on bullion, Gandhi added.
Analysts also noted that easing trade tensions between Washington and Beijing, following President Donald Trump’s comments on a potential trade deal with President Xi Jinping, further reduced gold’s safe-haven demand.
In contrast, silver prices surged ₹3,300 to ₹1,55,000 per kilogram (inclusive of taxes), compared to ₹1,51,700 on Wednesday.
In global markets, spot gold rebounded after a four-day decline, gaining USD 53.26 (1.36%) to USD 3,983.87 per ounce.
“Gold traded with mild gains after US President Donald Trump hinted at allowing nuclear weapons testing, which elevated risk sentiment,” said Jateen Trivedi, VP Research Analyst–Commodity and Currency at LKP Securities.
Spot silver was up 1.21% at USD 48.14 per ounce overseas.
Meanwhile, the dollar index rose 0.12% to 99.34, weighing on gold prices.
Experts said traders are now awaiting further comments from Fed officials for clarity on the rate outlook and near-term direction of bullion prices.
