Subdued demand from local jewellers alongside softer overseas trends triggered a second consecutive day of losses for gold prices in the Delhi bullion market on Wednesday. Following an unchanged trading session on Monday, the yellow metal has remained under consistent downward pressure through Tuesday and Wednesday.
Delhi Spot Rates Touch One-Week Low
In the national capital, gold of 99.9 percent purity slumped by Rs 700 on Wednesday to settle at Rs 1,48,900 per 10 grams, inclusive of all local taxes. This followed a modest dip of Rs 200 on Tuesday, when the precious metal ended at Rs 1,49,600 per 10 grams. The current decline brings prices to their weakest mark in a week, drawing close to the Rs 1,48,600 per 10 grams recorded on September 29.
Higher Crude Prices and Geopolitical Unease Weigh on Bullion
Market observers pointed to an absence of aggressive retail buying coupled with broader global weakness as primary headwinds for bullion assets. Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, noted that domestic gold prices dropped on the back of softened international cues and sluggish retail demand. He added that an upsurge in crude oil prices, fueled by fresh concerns over potential supply disruptions stemming from unrest in West Asia, compounded the downward trajectory in gold prices.
Depreciating Rupee Curbs Deeper Losses as Silver Holds Flat
A weakening domestic currency helped cushion the bullion market against steeper declines. On Wednesday, the Indian rupee retreated 43 paise against the US dollar to settle provisionally at 96.78. Supported by this currency depreciation, domestic silver managed to preserve its ground, holding unchanged at Rs 2.27 lakh per kilogram for the third consecutive session in Delhi.
Overseas Silver Retracts to Three-Month Trough
Across global trading desks, precious metals encountered visible selling. Spot gold shed 47.42 dollars, or 1.14 percent, falling to 4,116.55 dollars per ounce. International spot silver suffered a sharper contraction of 2.26 percent, touching a near three-month low of 59.97 dollars per ounce, a level not seen since July 9 when it touched roughly 59.96 dollars per ounce. Commodity market observer Akshat Siddhant noted that international gold remains pinned near 4,120 dollars per ounce while silver hovers around 60 dollars, as traders remain cautious ahead of minutes from the US Federal Reserve's meeting.
