New Delhi, 23 October: Gold and silver prices continued their downward trend on Thursday, October 22, as rising crude oil prices and inflation concerns weighed on precious metals. Gold touched a three-month low, while silver plunged nearly 50 per cent from its record high earlier this year.
Gold Falls Rs 1,000
Gold of 99.9 per cent purity declined by Rs 1,000 to Rs 1.48 lakh per 10 grams in Delhi, compared with Rs 1.49 lakh in the previous session, according to the All India Sarafa Association.
The yellow metal was last seen at similar levels on July 30, reflecting continued weakness in domestic bullion markets.
Silver Crashes Nearly 50%
Silver prices dropped Rs 5,900 to Rs 2,07,500 per kilogram from Wednesday’s closing price of Rs 2,13,400.
The white metal has fallen Rs 1.97 lakh, or 48.70 per cent, from its record high of Rs 4,04,500 per kg touched on January 29.
Silver has also declined 13.18 per cent from its December 31 level of Rs 2.39 lakh per kg, reaching a 10-month low.
Global Bullion Prices Decline
International gold prices slipped below USD 4,100 per ounce, falling nearly 1.7 per cent to USD 4,072.30.
Spot silver also declined nearly 4 per cent to USD 55.72 per ounce.
Market experts attributed the weakness to rising crude oil prices and expectations that global interest rates could remain elevated.
Crude Oil Fuels Inflation Concerns
Ashish Rajodiya of PL Capital said Brent crude approaching USD 112 per barrel had revived inflation fears, putting pressure on bullion prices.
Jateen Trivedi of LKP Securities said uncertainty surrounding the West Asia conflict continued to affect gold market sentiment.
Analysts believe silver is witnessing sharper losses because of its higher price volatility.
Fed Decision In Focus
Investors are closely watching the US Federal Reserve’s October 27-28 policy meeting and upcoming inflation data for fresh direction.
Gaurav Garg of Lemonn said the rupee was trading around 94.56 against the US dollar, supported by foreign inflows and RBI measures.
Analysts expect easing crude prices and geopolitical tensions to provide some relief to precious metals.
