Gold drops Rs 1,500 to Rs 1.47 lakh/10g; silver slumps Rs 2,000 in Delhi

Gold prices declined Rs 1,500 to Rs 1.47 lakh per 10 grams in the national capital on Monday and silver slumped Rs 2,000 tracking West Asia uncertainties.

The yellow metal of 99.9 per cent purity depreciated Rs 1,500 to Rs 1,47,000 per 10 grams (inclusive of all taxes) from Friday’s closing level of Rs 1,48,500 per 10 grams, according to local marketmen.

Silver also plunged by Rs 2,000 to Rs 2,35,000 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,37,000 per kg in the preceding session.

Traders said the renewed flare-up in West Asia lifted crude oil prices, fuelling inflation concerns and strengthening the US dollar, which weighed on the precious metals.

“Gold prices edged lower on Monday, tracking weakness in international markets as renewed tensions in the Middle East lifted crude oil prices and revived inflation concerns,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

He said the latest escalation between the US and Iran has heightened concerns over disruptions to global energy supplies and tighter oil market conditions in the third quarter.

In the international markets, spot gold fell USD 53.14, or 1.3 per cent, to USD 4,067.94 per ounce, and silver declined 2.32 per cent to USD 58.47 per ounce.

“Spot gold declined in global markets as a rise in oil prices stokes inflation concerns and increased expectations that the Federal Reserve may keep interest rates elevated for longer,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

Crude oil prices rallied after fresh military exchanges between Washington and Tehran reignited concerns over supplies through the Strait of Hormuz, a critical route for global oil shipments.

Market participants are awaiting the US Consumer Price Index (CPI) data, scheduled for release on Tuesday, for fresh clues on the Federal Reserve’s monetary policy trajectory.

“A higher-than-expected inflation reading may strengthen the dollar further and keep pressure on gold, while softer inflation could support a recovery,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.