Gold prices in the national capital fell by ₹800 to ₹1,58,000 per 10 grams on Wednesday, as rising crude oil rates and lingering geopolitical uncertainty weighed on investor sentiment, according to the All India Sarafa Association. The yellow metal of 99.9% purity had closed at ₹1,58,800 per 10 grams on Tuesday.
Silver also declined sharply, tumbling ₹5,730 to ₹2,35,000 per kilogram (inclusive of all taxes) from the previous close of ₹2,40,730 per kg, the association said.
Crude Oil and Geopolitical Factors Weigh
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said gold prices traded weak as higher crude oil rates and continued uncertainty after the US-Iran ceasefire window ended without fresh talks kept investors' sentiment cautious. The sharp rise in crude prices has added to concerns over inflation and the broader economic outlook, while the absence of fresh talks between Washington and Tehran has kept traders cautious.
Gaurav Garg, Head of Research at Lemon Markets Desk, added that bullion remained under pressure as investors awaited the Federal Reserve meeting minutes later in the day for fresh insights into the future interest-rate path.
International Markets
In international markets, spot gold gained nearly 1% to $4,361.76 per ounce, while silver traded flat at $63.33 an ounce. For bullion traders, the day's moves reflected a market caught between geopolitical uncertainty and rising energy costs, with gold's safe-haven appeal failing to translate into gains at home.
Weekly Performance and Outlook
Separately, analysts expect gold and silver prices to retain their upward momentum next week, though profit-booking at higher levels may temper the rally as investors await key US inflation data. US Core Personal Consumption Expenditures (PCE) inflation and GDP figures will be the key triggers for bullion, along with developments surrounding West Asia geopolitics, particularly the US-Iran peace deal and the reopening of the Strait of Hormuz.
Pranav Mer, Senior Vice President at JM Financial Services Ltd, said: "In the coming trading session, we expect bias to remain positive, but some profit-booking cannot be ruled out."
On the domestic front, gold futures for October delivery on the Multi Commodity Exchange (MCX) gained ₹7,932, or 5.13%, to close the week at ₹1.62 lakh per 10 grams. Silver for September delivery surged ₹10,673, or 4.52%, to settle at ₹2.46 lakh per kilogram.
Jateen Trivedi of LKP Securities noted that gold remained firmly positive this week, gaining more than 5% to close near ₹1.62 lakh per 10 grams on the MCX. He attributed the rally to renewed buying interest in bullion, softer bond yields and improving liquidity conditions.
In international markets, Comex gold futures for December delivery rose $243.3, or 5.5%, to close at $4,680.6 per ounce. Silver futures for September delivery climbed $4.42, or nearly 7%, to $69.53 per ounce in New York.
Pranav Mer added: "Gold futures ended yet another week in the positive with international spot gold closing above $4,620, ending with a weekly gain of more than 5% in global markets." He said the sharp price move mid-week was ignited by liquidity measures announced by the US Treasury Department to double down on its buyback of longer-dated bonds.
Analysts expect the positive momentum to continue in the near term, though they caution that profit-booking and upcoming economic data could introduce volatility.