NEW DELHI: Gold prices in the national capital dropped by Rs 500 to Rs 1,00,420 per 10 grams on Tuesday, driven by trends in the overseas markets, according to the All India Sarafa Association. The previous session had seen 99.9% pure gold close at Rs 1,00,920 per 10 grams.
Gold of 99.5% purity also fell by Rs 450, settling at Rs 1,00,050 per 10 grams (inclusive of all taxes), compared to Rs 1,00,500 per 10 grams on Monday.
“Gold prices eased as peace talks between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy, held at the White House with European and NATO leaders, raised hopes of an end to the Ukraine war,” said Chintan Mehta, CEO of Abans Financial Services.
Praveen Singh, Head of Commodities and Currencies at Mirae Asset Sharekhan, added, “Weakness in the USD/INR pair, following the Indian government’s tweaks to GST rules, is weighing on domestic gold prices.”
Silver prices also declined, dropping Rs 1,000 to Rs 1,14,000 per kilogram (inclusive of all taxes), compared with Rs 1,15,000 per kg in the previous session.
In international markets, spot gold rose 0.15% to USD 3,337.92 per ounce in New York. Renisha Chainani, Head of Research at Augmont, noted, “Gold fell below USD 3,380 per ounce as investors await US Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium and the minutes from the Fed’s latest meeting.”
Spot silver was trading at USD 38.09 per ounce, up 0.19%. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said, “US housing market data, including building permits and housing starts, will be released later today, potentially causing volatility in the US dollar and gold prices.”
