Gold prices dropped by Rs 3,000 to Rs 1.49 lakh per 10 grams, while silver tanked by Rs 10,500 to a more than two-month low in the national capital on Tuesday due to a stronger dollar in overseas markets.
According to the All India Sarafa Association, gold of 99.9 per cent purity declined by Rs 3,000, or 2 per cent, to Rs 1,49,300 per 10 grams (inclusive of all taxes).
The yellow metal was last seen around these levels on March 27, when it was quoted at Rs 1,47,800 per 10 grams.
Silver also bore the brunt of the selloff, tumbling by Rs 10,500, or 4.3 per cent, to Rs 2,35,000 per kilogram (inclusive of all taxes), its lowest level in over two months. The white metal had traded at Rs 2,37,000 per kg on April 3.
“Gold prices in the domestic markets on Tuesday traded lower as a stronger US dollar and expectations of higher interest rates continue to put pressure on precious metals,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said: “Bullion had posted modest gains on Monday as progress in US-Iran negotiations weighed on crude oil, but those gains proved short-lived as rate expectations reasserted their dominance”.
In the international markets, spot gold slipped USD 70.33, or nearly 2 per cent, at USD 4,121.10 per ounce, while silver fell over 4 per cent to trade at USD 62.27 per ounce.
Analysts noted that a stronger dollar has emerged as the primary headwind for bullion.
“Spot gold traded nearly 2 per cent at USD 4,120 per ounce level as commodities are under pressure due to interest rate hike concerns by the US Federal Reserve,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Rising for the sixth consecutive session, the dollar index hit 101.15, its highest level since May 2025, as traders increasingly priced in the possibility of another rate hike by the Federal Reserve.
Chainwala said gold prices are likely to remain under pressure, as traders cautiously await key US economic data and speeches by Federal Reserve officials for fresh direction on the monetary policy outlook.
