Gold declines Rs 1,200 in Delhi, silver drops Rs 4,000

Delhi: Gold prices declined by Rs 1,200 to Rs 1.48 lakh per 10 grams in the national capital on Wednesday, and silver dropped by Rs 4,000, as the US dollar gained strength amid weak global trends.

According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity decreased by Rs 1,200 to Rs 1,48,100 per 10 grams (inclusive of all taxes) from Tuesday’s closing level of Rs 1,49,300.

Silver also extended its downward trend for the second straight day, falling Rs 4,000 to Rs 2,31,000 per kilogram (inclusive of all taxes). It had settled at Rs 2,35,000 per kg in the previous session after plunging Rs 10,500, its steepest fall in over two weeks.

Analysts said the latest losses have pushed the white metal prices to levels last seen in early April, when the metal traded at Rs 2.37 lakh per kg, as traders continue to favour dollar-denominated assets.

“Gold prices extended their decline on Wednesday, as a powerful rally in the US dollar and growing expectations of tighter monetary policy continued to pressure precious metals,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the overseas markets, spot gold slipped by USD 52.01, or 1.3 per cent, to USD 4,058.10 per ounce, while silver fell nearly 2 per cent at USD 60.48 per ounce.

“Gold prices extended their slide on Wednesday to trade around USD 4,050 per ounce as the dollar index is once again becoming stronger to breach the 101 level, the highest since May 2025,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

The greenback also gained after European Central Bank President Christine Lagarde downplayed the need for a forceful response to inflationary pressure after the June rate hike, he added.

Analysts said the decline in precious metals in the overseas trade reflects a broader liquidity driven adjustment across financial markets.

“The weakness is being driven by a broader liquidity event triggered by sharp profit-booking and sell-offs in global AI and technology stocks,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.

As investors face losses in equities, many are liquidating gold holdings to raise cash, meet margin requirements and reduce leverage, he noted.

“At the same time, money is flowing into the US dollar, with the greenback adding further pressure on bullion prices.

“This is one of those rare periods where both equities and gold are declining together as investors sell what they can rather than what they want,” Trivedi said.

Market participants expect gold to remain under pressure, with rallies likely to attract fresh selling until signs emerge of a softer dollar or renewed investment demand for the precious metals, analysts said.