Gold prices dropped in the national capital on Tuesday, with 10 grams of 99.9% pure gold falling by Rs 500 to Rs 1,00,420, according to the All India Sarafa Association. The previous closing price was Rs 1,00,920 per 10 grams.
Similarly, 99.5% pure gold also saw a decline, dipping by Rs 450 to Rs 1,00,050 per 10 grams.
Several factors contributed to the price drop. Abans Financial Services CEO Chintan Mehta noted that peace talks between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy offered hope for an end to the war in Ukraine, which cooled down gold prices. Additionally, Praveen Singh from Mirae Asset Sharekhan pointed out that changes to GST rules by the Indian government caused weakness in the USD/INR pair, also weighing on domestic gold prices.
Silver and International Markets
Silver prices also fell, with the white metal declining by Rs 1,000 to Rs 1,14,000 per kilogram.
In the international markets, spot gold saw a slight increase, rising by 0.15% to USD 3,337.92 per ounce in New York. According to Renisha Chainani of Augmont, gold prices had recently fallen below USD 3,380 as investors awaited statements from US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.
Spot silver in international markets also traded higher, up 0.19% to USD 38.09 per ounce. Saumil Gandhi of HDFC Securities mentioned that upcoming US housing market data, including building permits and housing starts, could create volatility for both the US dollar and gold prices.
