Gold prices on Wednesday tumbled by Rs 400 to Rs 1,00,020 per 10 grams in the national capital due to sustained offloading from stockists and a firm Greenback, which weighed down investor demand for the safe-haven metal.
The yellow metal of 99.9 per cent purity had settled at Rs 1,00,420 per 10 grams in the last session.
At the same time, gold of 99.5 per cent purity also saw a drop of Rs 350, closing at Rs 99,700 per 10 grams, as against the earlier close of Rs1,00,050.
Experts said that global cues played a crucial role in weighing down domestic bullion prices.
“Gold prices extended losses on Wednesday as the US dollar continued to trade with minimal gains, surging to a one-week high. A decline in the geopolitical risk premium followed a positive outcome from President Donald Trump’s meetings with Vladimir Putin, Volodymyr Zelenskyy, and European leaders. This development raised hopes for a potential resolution to the ongoing conflict, which appears to be the leading factor in the decline in gold prices in recent times,” said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
Global headwinds impacted white metal as well. Silver rates slipped by Rs 1,500 to Rs 1,12,500 per kilogram in the domestic market on Wednesday. It had settled at Rs 1,14,000 per kg in the last session.
On the global front, spot gold was trading slightly higher at USD 3,326.04 per ounce, though it remained close to a three-week low. Market watchers noted that the strengthening of the US dollar weighed heavily on bullion.
“Gold prices inched lower to their lowest level in nearly three weeks as the dollar strengthened, while investors awaited US Federal Reserve Chair Jerome Powell’s last speech at the Jackson Hole symposium on Friday. Meanwhile, the US dollar index climbed to its highest level in more than a week and USD/INR fell at 87 level, weighing further on domestic prices,” said Manav Modi, Analyst, Precious Metal Research, Motilal Oswal Financial Services.
Silver too faced selling pressure overseas, slipping nearly 1 per cent to USD 37.07 per ounce.
Investors are now looking ahead to key policy signals from the US central bank. The minutes from the Federal Reserve’s latest meeting, scheduled for release later on Wednesday, are expected to provide fresh insights into the monetary policy outlook. Any hawkish stance by the Fed could keep the dollar elevated, putting further downward pressure on gold and silver in the short term.
Despite the recent slide, analysts suggest bullion could remain volatile in the coming days, with its trajectory closely tied to global geopolitical cues, dollar movement, and the Federal Reserve’s policy signals. For now, traders are bracing for heightened fluctuations as the Jackson Hole symposium sets the stage for possible clues on the Fed’s future rate path.
