Gold prices in the national capital saw a decline of Rs 500 on Thursday, settling at Rs 98,000 per 10 grams (inclusive of all taxes) for 99.5 percent purity. This dip, reported by the All India Sarafa Association, was attributed to weak global cues.
Chintan Mehta, CEO of Abans Financial Services, explained that the continued correction in gold prices stemmed from easing tariff risks and a more cautious stance from the Federal Reserve, which reduced safe-haven demand for the yellow metal. He elaborated that the US Federal Reserve’s May meeting minutes indicated a “wait-and-see” approach regarding interest rate cuts, as policymakers assess the economic impact of recent policy moves, including the now-blocked reciprocal tariffs by the US Court of International Trade.
In contrast, silver prices remained stable in local markets on Thursday, trading at Rs 1,00,000 per kilogram (inclusive of all taxes).
Despite the downward pressure on gold, the ongoing conflict between Israel and Hamas in the Middle East continues to fuel instability and global uncertainty. This, according to Mehta, is bolstering safe-haven demand for gold and providing some upward support to prices.
Internationally, spot gold fell by $17.94 per ounce, or 0.54 percent, to $3,304.46 per ounce.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, noted that investors are now keenly anticipating upcoming US macroeconomic data, including preliminary GDP, weekly jobless claims, and pending home sales, for further economic indicators.
