Gold prices slumped by Rs 960 to Rs 1,53,440 per 10 grams in the national capital on Thursday, tracking a firm trend in equities and the rupee. Silver also tumbled by Rs 6,660 to Rs 1,03,600 per kilogram, according to the All India Sarafa Association.
Gold and Silver Prices Decline
The yellow metal of 99.9 per cent purity declined by Rs 960 to Rs 1,53,440 per 10 grams (inclusive of all taxes) from Wednesday's closing level of Rs 1,54,400 per 10 grams. Meanwhile, gold of 99.5 per cent purity also fell by Rs 960 to Rs 1,52,740 per 10 grams.
Silver prices also witnessed a sharp decline, slipping by Rs 6,660 to Rs 1,03,600 per kg from the previous close of Rs 1,10,260 per kg.
Factors Behind the Decline
Market analysts attributed the fall in precious metals to a strong performance in domestic equities and an appreciating rupee. Firm equities reduced the safe-haven appeal of gold and silver, while a stronger rupee made the dollar-denominated metals less attractive.
The rupee strengthened by 12 paise to 83.45 against the US dollar in early trade, supported by positive domestic markets and foreign fund inflows.
Global Market Trends
In the global markets, gold prices also traded lower, with spot gold declining 0.3 per cent to $2,320 per ounce in international markets. Silver also fell 1.2 per cent to $29.50 per ounce.
Investors are closely watching the US Federal Reserve's monetary policy stance and upcoming economic data for further cues on interest rates.
