Gold Prices Decline in Delhi Amid Firmer Rupee and Gains in Equities

Mumbai: Gold prices opened the week on a subdued footing in Delhi, declining Rs 200 amid a firmer rupee, muted international bullion cues and gains in domestic equities. Gold of 99.9 per cent purity settled at Rs 1,56,400 per 10 grams on Monday, compared with Friday’s closing level of Rs 1,56,600 per 10 grams. Silver witnessed sharper liquidation, tumbling Rs 5,000 to Rs 2.42 lakh per kilogram, inclusive of all taxes, according to local traders. The white metal had finished the preceding session at Rs 2.47 lakh per kilogram. Its steep decline reflected fragile global sentiment and profit-booking at elevated levels. Internationally, spot gold declined USD 24.75, or 0.57 per cent, to USD 4,353.48 an ounce. Silver, however, traded nearly unchanged at USD 66.27 an ounce. Gold remained close to the psychologically important USD 4,350 level as easing crude oil prices moderated inflation concerns and weakened the immediate safe-haven impulse. Akshat Siddhant, Lead Quant Analyst at Mudrex, said bullion was trading near this level after oil prices declined for a fourth consecutive session, helping alleviate inflationary pressure. The rupee appreciated 15 paise to 95.81 against the US dollar. A stronger domestic currency makes dollar-denominated bullion comparatively cheaper for Indian buyers, exerting pressure on local prices. Gains in equity markets also diverted some capital towards risk assets, curbing demand for precious metals. Gaurav Garg, Head of Research at Lemonn, said gold and silver were caught between competing forces. Hawkish commentary from Federal Reserve officials and lingering inflation concerns kept bond yields and the dollar firm. Conversely, continuing tensions in West Asia sustained safe-haven interest and provided a floor beneath bullion prices. Garg added that WTI crude slipped below USD 100 as investors assessed the potential restoration of Saudi shipments. However, persistent attacks and supply disruptions remained material upside risks for oil and bullion markets.