Gold and silver prices fell for the third consecutive day. Investors appeared wary of US economic data and signals from the Federal Reserve, which had a direct impact on domestic prices.
Gold prices in Delhi fell by Rs 700 to Rs 1,25,400 per 10 grams. Meanwhile, gold of 99.5% purity closed at Rs 1,24,800 per 10 grams.
Silver also fell sharply for the third consecutive day, falling by Rs 1,000 to Rs 1,55,000 per kg. The persistently falling prices indicate that investors are wary of buying precious metals in the current climate.
Jatin Trivedi of LKP Securities said, "A strong rupee and weakness in international markets have put pressure on domestic gold prices."
Saumil Gandhi of HDFC Securities also pointed out that sharp fluctuations in the rupee have added to the volatility of gold in the domestic market.
Kaynat Chenwala of Kotak Securities said, "Trade is slow ahead of US economic data. If the data turns out to be better than expected, expectations of a rate cut could weaken further."
In most every household in India small purchases of gold are made on occasion. Gold is also considered as a chain of times of crisis. Investments made in gold come in handy if necessary. Click here for news related to gold and silver
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