New Delhi, Apr 29 (PTI) Gold prices declined by Rs 1,500 to Rs 1.52 lakh per 10 grams in the national capital on Wednesday due to profit booking as rising crude oil rates raise concerns over inflation ahead of the US Federal Reserve’s decision.
However, silver prices posted a modest gain of Rs 500 to Rs 2,44,500 per kilogram (inclusive of all taxes) from Tuesday’s closing level of Rs 2,44,000 per kg, as per the All India Sarafa Association.
Gold of 99.9 per cent purity decreased by Rs 1,500, or 1 per cent, to Rs 1,52,800 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,54,300 per 10 grams in the previous session.
Bullion traders weighed higher energy costs tied to tensions in West Asia, which could keep inflation elevated and force central banks to stay restrictive for longer.
Gold traded weak on Wednesday as continued profit booking and rising crude-led inflation concerns kept pressure on precious metal prices, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
Higher oil prices are reinforcing expectations that the US Federal Reserve may maintain a tighter stance on monetary policy, which supports the dollar and limits upside in bullion rates, he added.
Traders are now focused on the Fed’s policy decision and comments from Chair Jerome Powell for signals on how officials view shaping the outlook for interest rates amid ongoing US-Iran uncertainty, Trivedi said.
According to the World Gold Council, India’s gold demand rose 10 per cent on-year to 151 tonnes during the January-March quarter, led by strong investment demand despite elevated prices.
In the international market, spot gold fell USD 23.31, or 0.51 per cent, to USD 4,573.75 per ounce, while silver traded 0.18 per cent lower at USD 72.99 per ounce.
Gold was trading near USD 4,570 per ounce after US President Donald Trump ordered preparations for an extended blockade of the Strait of Hormuz as Washington and Tehran remained divided over issues including nuclear enrichment, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
On the outlook, Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said: “Gold may not immediately surge to USD 5,000, as ongoing geopolitical tensions in West Asia continue to weigh on investor sentiment.” However, the long-term outlook remains firmly bullish, supported by strong fundamentals such as central bank demand, inflationary pressures, and limited supply growth, he added. PTI HG HG BAL BAL
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.