New Delhi, July 8: Declining for the third straight session, gold prices fell Rs 800 to Rs 1.48 lakh per 10 grams in the national capital on Wednesday, as weak global trends and a spike in crude oil rates amid escalating tensions in West Asia dampened investor sentiments. The yellow metal depreciated by Rs 800 to Rs 1,48,450 per 10 grams from Tuesday’s closing level of Rs 1,49,250 per 10 grams. However, silver prices remained unchanged at Rs 2,39,800 per kilogram.
Traders said bullion remained under pressure as surging crude oil prices stoked inflation concerns, lifting US Treasury bond yields and the dollar.
“Gold prices extended their decline on Wednesday, tracking weakness in overseas trade as rising geopolitical tensions and a sharp rebound in crude oil prices dampened sentiment toward precious metals,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
In the international markets, spot gold fell USD 49.46, or 1.2 per cent, to USD 4,056.24 per ounce, and silver declined to trade at USD 58.61 per ounce.
“Spot gold has come under renewed downside pressure in the global markets on Wednesday after US President Donald Trump declared the interim peace agreement with Iran was ‘over’, reigniting fears of a broader Middle East conflict,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
The renewed tensions between the US and Iran have pushed crude oil prices sharply by nearly 7 per cent higher, while Treasury bond yields and the dollar index have also strengthened on expectations that elevated energy prices could fuel inflation and keep interest rates higher for longer.
Renisha Chainani, Head – Research at Augmont, said: “Investors were also waiting on the minutes from the Federal Reserve’s FOMC meeting June 16-17 meeting, due later in the day, for fresh clues on where interest rates are headed under Chair Kevin Warsh”. (PTI)
