New Delhi, July 9: Gold prices declined by Rs 700 to Rs 98,420 per 10 grams in the national capital on Wednesday in line with weak global trends, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity had closed at Rs 99,120 per 10 grams in the previous market session.
Gold of 99.5 per cent purity depreciated by Rs 600 to Rs 98,000 per 10 grams (inclusive of all taxes). It had settled at Rs 98,600 per 10 grams on Tuesday.
Additionally, silver prices plunged by Rs 800 to Rs 1,04,000 per kg (inclusive of all taxes) on Wednesday. The white metal had ended at Rs 1,04,800 per kg in the previous market close.
“Gold prices are experiencing selling pressure on Wednesday due to reduced expectations for a Federal Reserve rate cut in July and a strengthening US dollar.
“The US dollar remains strong, trading near a two-week high, as market participants anticipate that the Fed will maintain elevated interest rates considering expected worsening inflation driven by higher import taxes and a resilient US labour market,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
On the global front, spot gold went lower by USD 11.66 or 0.35 per cent to USD 3,289.81 per ounce.
“Gold prices dropped below USD 3,300 per ounce as markets balanced US interest rate cut prospects with new trade risks,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities, said.
President Donald Trump on Tuesday ruled out extending the August 1 tariff deadline and unveiled sweeping new measures, including a 50 per cent tariff on copper and possible 200 per cent duties on pharmaceuticals.
The tariffs are expected to stoke US inflation, trimming the likelihood of more aggressive Federal Reserve easing. Investors will be awaiting the June FOMC (Federal Open Market Committee) minutes later in the day for further clues on the Fed’s interest path, Kalantri added. (PTI)
