Selling pressure across the domestic precious metals market continued unabated as gold and silver recorded their third consecutive day of losses on Wednesday. Across the first three trading sessions of the week, gold prices have retreated by a cumulative 3600 rupees, while silver has dropped by 7500 rupees. The sustained appreciation of the Indian rupee against the US dollar has emerged as the primary catalyst weighing on local bullion rates, reducing the landing cost of dollar-denominated imports.
Gold Declines by 1800 Rupees in Delhi Bullion Market
In the national capital bullion market on Wednesday, prices of gold with 99.9 percent purity slumped by 1800 rupees to settle at 1,50,800 rupees per 10 grams. This marks the third straight day of price reductions following earlier declines of 1400 rupees on Monday and 400 rupees on Tuesday.
At the close of trade on Friday of the preceding week, gold had concluded at 1,54,400 rupees per 10 grams. Following the three successive sessions of price cuts this week, the yellow metal has lost 3600 rupees from that weekend peak of 1,54,400 rupees, moving down to the current rate of 1,50,800 rupees per 10 grams.
Silver Sheds 5000 Rupees in a Single Session
Industrial metal silver witnessed an even steeper fall, plunging by 5000 rupees per kilogram in a single trading session on Wednesday. With this sharp retreat, silver rates in the spot market dropped to 2,21,000 rupees per kilogram.
The white metal had already weakened earlier in the week, sliding by 2000 rupees on Monday and another 500 rupees on Tuesday. Prior to this downtrend, silver had settled higher by 4500 rupees at 2,28,500 rupees per kilogram on Friday of the previous week. From that closing level of 2,28,500 rupees, silver has now shed a total of 7500 rupees over the course of three sessions to reach 2,21,000 rupees per kilogram.
Rupee Strength and Central Bank Action Ease Import Costs
The persistent downward adjustment in precious metal values coincides directly with ongoing strength in the foreign exchange market. On Wednesday, the Indian rupee gained 19 paise against the US dollar to finish at 95.17 per dollar. This session represented the fourth straight day of positive momentum for the domestic currency.
Support for the rupee came largely through intervention by the Reserve Bank of India (RBI). The central bank stepped into the market to absorb near-term dollar demand and curb speculative risks within the foreign exchange space. Traders noted that a stronger rupee makes imports of dollar-quoted commodities like gold and silver less costly in local currency terms, exerting downward pressure on domestic spot prices.
