Gold prices in India tumble after six-day rally
Gold prices in India fell by Rs 750 per 10 grams, breaking a six-day winning streak, due to weak global cues and subdued demand from jewelers. Silver prices also experienced a decline.
Subdued demand impacts prices
According to the All India Sarafa Association, gold prices dropped to Rs 75,650 per 10 grams from Rs 76,400 in the previous session. The decline was attributed to subdued demand from jewelers in the local market.
International factors influencing prices
The drop in gold prices was also influenced by a weak trend in global markets. Comex gold was trading lower at USD 2,414.60 per ounce, down by USD 41.80 from the previous day. The recovery of the US dollar and an increase in US 10-year treasury yields contributed to the decline in gold prices worldwide.
Insight into market dynamics
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, mentioned that gold prices are likely to hold declines due to the absence of significant economic indicators. However, potential dovish comments from Fed officials could prevent further losses. Additionally, Swiss gold exports decreased in June, impacting global supply and demand dynamics.
Silver prices follow suit
Silver prices also nosedived, dropping to Rs 93,000 per kg from Rs 94,000 in the previous session. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, noted that silver prices were also influenced by the recovery of the US dollar, which provided support and contributed to the overall decline in precious metal prices.
Overall market assessment
The overall decline in gold and silver prices was a result of a combination of factors such as weak global cues, recovery of the US dollar, and subdued demand from jewelers. While market dynamics continue to impact precious metal prices, potential comments from Fed officials could provide some stability in the market.
