Editor’s Note
This article discusses the recent decline in gold prices in Delhi, driven by a stronger US dollar following signals of slower interest rate cuts from the Federal Reserve and progress in US-China trade talks.
Gold prices in Delhi fell by 1,000 rupees to 123,400 rupees per 10 grams after the US Federal Reserve signaled a slower pace of interest rate cuts and indications of progress in US-China trade talks boosted the dollar.
Following the Federal Reserve’s slower pace of interest rate cuts and signs of progress in US-China trade talks, the dollar strengthened. This caused gold in Delhi to fall by 1,000 rupees to 123,400 rupees per 10 grams. According to the All India Sarafa Association, gold of 99.5% purity fell by 1,000 rupees to 122,800 rupees per 10 grams (including all taxes). On Wednesday, its price was 123,800 rupees per 10 grams. In the local bullion market, gold of 99.9% purity had closed at 124,400 rupees per 10 grams in the previous session. Earlier, gold prices softened on Thursday after aggressive comments on interest rates from Federal Reserve Chairman Jerome Powell.
Gandhi said this development led to strength in US bond yields and the dollar, putting pressure on the bullion market. Analysts say tensions between Washington and China have eased following comments from Donald Trump and Xi Jinping on a potential trade deal. Gold’s appeal as a safe-haven investment has diminished, putting pressure on prices.
On Thursday, the price of silver increased by 3,300 rupees to 155,000 rupees per kilogram (including all taxes). According to the Sarafa Association, the white metal had closed at 151,700 rupees per kilogram on Wednesday. In the global market, spot gold rose by $53.26 or 1.36% to $3,983.87 per ounce after four days of decline.
Spot silver in foreign markets rose 1.21% to $48.14 per ounce. Meanwhile, the dollar index, which measures the dollar’s strength against six currencies, rose 0.12% to 99.34, putting pressure on gold.