Gold prices continued their downward trend for the fourth consecutive day in the Delhi bullion market on Friday, as the US dollar strengthened further. The precious metal faced sustained selling pressure amid a broader rally in the greenback, which dampened demand for safe-haven assets.
Silver Prices Slump
Silver also witnessed a sharp decline, trading near Rs 2,40,000 per kg. This level was last observed on April 7, indicating a significant drop in value. The white metal's slump mirrored the trend in gold, as investor sentiment turned cautious.
Dollar Rally Impact
The dollar index climbed to a multi-month high, making commodities priced in the greenback more expensive for holders of other currencies. This weighed heavily on both gold and silver prices. Market analysts attributed the decline to a combination of stronger US economic data and expectations of tighter monetary policy by the Federal Reserve.
In Delhi, gold of 99.9% purity was quoted lower, while silver followed suit. The extended losing run has erased recent gains, with traders monitoring global cues for further direction.
According to PTI, the white metal had traded near the Rs 2,40,000 per kg mark on April 7, highlighting the severity of the current slump. Market participants are now eyeing key support levels, as the dollar rally shows no signs of abating.
