New Delhi, July 17: Gold resumed its downward trend in the national capital on Friday, falling Rs 800 to Rs 1.45 lakh per 10 grams as a rally in crude oil dampened investors’ sentiment amid the widening conflict in West Asia.
The yellow metal of 99.9 per cent purity depreciated by Rs 800 to Rs 1,45,500 per 10 grams (inclusive of all taxes) from Thursday’s closing level of Rs 1,46,300 per 10 grams, according to the All India Sarafa Association.
Gold traded near this level on June 25, when it was quoted at Rs 1,45,300 per 10 grams.
During the week, the precious metal lost Rs 3,000, or 2.02 per cent, after sliding on Monday and Tuesday before remaining flat in the last two sessions.
Silver fared worse, dropping by Rs 2,000 to Rs 2,22,500 per kilogram. The white metal has shed Rs 14,500, or 6.12 per cent, in the past five consecutive sessions, from the Rs 2.37 lakh per kg level seen on July 10.
Traders said gold resumed its downward trajectory after a brief pause, while silver remained under sustained liquidation pressure amid sluggish domestic buying.
A spike in crude oil prices has strengthened expectations that the US Federal Reserve may have to keep monetary policy restrictive, boosting the dollar and Treasury yields at the expense of assets such as gold, they added.
In international markets, spot gold gained USD 15.42, or 0.39 per cent, to USD 3,992 per ounce; however, silver edged lower to USD 55.37 per ounce.
The recovery, however, remained fragile after Washington widened its military campaign against Tehran, targeting bridges, energy infrastructure and facilities near a strategic port. According to reports, Iran had directed Yemen’s Houthis to prepare for a possible closure of the Bab el-Mandeb shipping route, which has heightened concerns over a second maritime chokepoint, potentially intensifying risks to global energy supplies and inflation. (PTI)
