New Delhi: Gold prices eased from record highs on Wednesday, slipping by ₹1,300 to ₹1,13,800 per 10 grams in the national capital as investors booked profits ahead of the US Federal Reserve’s policy announcement.
According to the All India Sarafa Association, gold of 99.5% purity fell by ₹1,300 to ₹1,13,300 per 10 grams (inclusive of taxes). A day earlier, the yellow metal had surged by ₹1,800 to touch lifetime highs of ₹1,15,100 (99.9% purity) and ₹1,14,600 (99.5% purity) per 10 grams.
“Gold traded weak on profit booking ahead of the Fed decision, with markets awaiting not just a rate cut but also guidance on future easing. A neutral stance or less dovish tone could trigger further downside,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Silver also slipped, shedding ₹1,670 to ₹1,31,200 per kg, after touching a fresh peak of ₹1,32,870 in the previous session.
In global markets, gold retreated nearly 1% to USD 3,664.82 an ounce after hitting a record USD 3,703.23 on Tuesday. Silver too dropped close to 3% to USD 41.38 per ounce.
“Spot gold eased as the dollar attempted a recovery from multi-year lows ahead of the FOMC’s rate decision. Markets now await Fed Chair Jerome Powell’s remarks and the updated dot plot for policy direction,” said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
Praveen Singh, Head of Commodities and Currencies at Mirae Asset Sharekhan, added that while a 25-basis point rate cut is widely expected, “dissenting views from Fed members like Stephen Miran and Michelle Bowman could pave the way for deeper cuts later.”
