Gold prices witnessed a decline for the third straight trading session as weak global cues weighed on bullion trade. In the Delhi bullion market on Wednesday, the precious metal slipped by ₹900 to settle at ₹1.54 lakh per 10 grams. A day earlier on Tuesday, gold of 99.9 percent purity stood at ₹1,54,900 per 10 grams. Following this retreat, 22-carat gold was quoted at ₹1,41,888 per 10 grams, while 18-carat gold stood at ₹1,16,175 per 10 grams. Silver, on the other hand, held steady for the second consecutive day, holding unchanged at ₹2.42 lakh per kilogram.
Firmer Dollar Index and Global Selling Trigger Retreat
The downward momentum in bullion was largely driven by subdued trends overseas and an appreciating greenback. The dollar index moved up to trade around 100.85, prompting investors to cash in profits after bullion touched lofty price territory. This profit-taking placed heavy downward pressure on spot quotes across trading floors. In the international spot market, gold prices shed roughly 1 percent to touch 4,317.09 dollars per ounce. Concurrently, overseas silver faced even steeper headwinds, sliding around 3 percent to trade at 65.17 dollars per ounce.
US Federal Reserve Policy Signals Cloud Sentiment
Hawkish remarks from US Federal Reserve officials regarding tighter monetary policy have bolstered market expectations for elevated interest rates. Higher interest rates typically diminish the appeal of non-yielding bullion assets, leading investors to favor cash yields and bonds over precious metals. The renewed prospect of persistent rate hardening provided immediate impetus for traders to trim exposure, compounding pressure across domestic retail desks.
Sixty Percent Annual Surge Alters Consumer Buying Patterns
Despite the three-day slide, gold remains substantially costlier than it was twelve months ago. Domestic retail prices climbed from roughly ₹98,000 per 10 grams to near ₹1.57 lakh per 10 grams over the past year, registering an increase of nearly 60 percent. A sustained rally in international markets, depreciation in the Indian rupee, and an import duty hike introduced in April drove this massive annual surge. These elevated price tags have steadily reshaped retail jewellery buying habits. Consumers are visibly moving away from heavy traditional ornaments, opting instead for lightweight designs, exchange of old household gold, gold coins, digital gold, and ETF products.
