Gold prices slipped Rs 500 to Rs 1,01,020 per 10 grams in the New Delhi on Wednesday, dragged down by persistent offloading from stockists.
The precious metal of 99.9 per cent purity had closed at Rs 1,01,520 in the last trading session.
Similarly, gold of 99.5 per cent purity also slipped by Rs 500 to Rs 1,00,600 per 10 grams, inclusive of all taxes. The decline came despite a firming trend in overseas markets, where the metal drew support from safe-haven demand.
Silver prices, however, remained unchanged at Rs 1,12,000 per kilogram in the domestic market, with traders opting for a wait-and-watch approach.
In international trade, spot gold gained USD 10.79, or 0.32 per cent, to reach USD 3,358.99 per ounce in New York. The precious metal held steady around the USD 3,350 mark, as market participants awaited cues from key US economic data and commentary from central bank officials.
“Spot gold is trading steady near USD 3,350 per ounce as traders await speeches from several Fed officials, along with US Producer Price Index and retail sales data, for further clues on the monetary policy outlook,” said Kaynat Chainwala, AVP of Commodity Research at Kotak Securities.
Spot silver in global markets rose 1.58 per cent to USD 38.51 per ounce, driven by improving sentiment in the precious metals complex.
Political developments in the United States also played a role in shaping investor sentiment. “US President Donald Trump’s ongoing political pressure on Federal Reserve Chair Jerome Powell to lower interest rates has heightened market anxiety, further boosting gold’s status as a safe-haven asset,” noted Chintan Mehta, CEO of Abans Financial Services.
Investors are now turning their attention to high-level geopolitical discussions, which could influence gold’s trajectory in the near term. “Traders are now focusing on the upcoming talks between US President Donald Trump and his Russian counterpart Vladimir Putin set for Friday, which could lead to a new direction for gold prices,” said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
Market outlook
Analysts suggest that while gold’s short-term domestic movement may be swayed by stockist activity and currency fluctuations, the broader global narrative remains supportive. Persistent geopolitical uncertainties, coupled with political pressure on the US Federal Reserve, have bolstered the metal’s safe-haven appeal.
The market’s immediate focus will be on the US Producer Price Index and retail sales figures, which could provide insight into inflationary trends and consumer strength in the world’s largest economy. A dovish tilt from the Federal Reserve could lend further support to gold prices globally.
In India, the metal’s price trajectory will also hinge on seasonal demand trends, particularly as the festive and wedding seasons approach — periods that typically drive increased buying from jewellers and retail customers.
With silver showing resilience despite gold’s pullback, traders believe that any sustained upward momentum in the global precious metals market could spill over into domestic prices.
For now, gold remains caught between short-term selling pressure in the domestic market and supportive fundamentals in global trade.
