New Delhi: Gold prices slipped to Rs 1.59 lakh per 10 grams in the national capital on Friday, June 5, capping a roller-coaster week, as frequently shifting signals from West Asia kept investors on edge.
According to local marketmen, the yellow metal of 99.9 per cent purity fell Rs 400 to Rs 1,59,900 per 10 grams (inclusive of all taxes) after briefly reclaiming the Rs 1.60 lakh level a day earlier.
The decline followed a week of sharp swings, with the precious metal swinging between gains and losses in almost every session.
During the week, gold has shed Rs 3,000, or nearly 2 per cent, highlighting the uncertainty gripping precious metal markets.
Silver prices witnessed an even steeper fall. Extending losses for the third consecutive session, the white metal slumped by Rs 5,000 to Rs 2,60,700 per kilogram.
On a weekly basis, its losses widened to Rs 14,000, or 5.09 per cent.
Analysts said bullion prices were pressured by weakness in global markets and a stronger rupee after the Reserve Bank of India (RBI) announced measures aimed at attracting foreign capital and supporting the domestic currency.
“Gold prices in the domestic market declined on Friday, tracking weakness in the international market and additional pressure from a sharp recovery in the rupee,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
While investors balanced lingering geopolitical uncertainties against growing expectations that US interest rates could remain elevated for longer, he added.
In the international markets, spot gold fell marginally to USD 4,470.79 per ounce, while silver slipped over 1 per cent to USD 72.89 per ounce.
“Spot gold is edged lower on Friday and on course for a second consecutive week of losses, as a confluence of hawkish macro signals and stalled geopolitical diplomacy keeps sentiment fragile,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
The yellow metal offered a brief respite in the preceding session as softer bond yields, a weaker US dollar, and cautious diplomatic optimism around Washington-Tehran talks lifted the metal.
However, the gains were unravelled quickly once Hezbollah rejected the US-brokered Israel-Lebanon ceasefire, reminding market participants that the region’s conflict architecture remains deeply fractured, she added.
On the domestic front, the RBI kept its benchmark repo rate unchanged at 5.25 per cent, as expected, and announced a raft of measures to attract foreign capital and support the rupee amid growing risks to growth and inflation from the prolonged West Asia conflict, elevated energy prices and global supply-chain disruptions.
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