The price of gold witnessed a fall for three days running in Delhi on Wednesday. The rupee appreciation added weight to pressure on the metal. The price of gold witnessed a fall of ₹1,800 to ₹1,50,800 per 10 grams. Similarly, the price of silver witnessed a fall of ₹5,000 to ₹2.21 lakh per 10 grams.
As per the All India Bullion Association, the purity of 99.9% metal fell from its closing price of ₹1,52,600 inclusive of all taxes, on Tuesday. The price of silver also fell below its closing price of ₹2.26 lakh per kilogram. Till date, the price of the yellow metal has seen a fall of ₹3,600 since October 9. Similarly, the white metal has seen a fall of ₹7,500 during the same period. This is indicative of the seriousness of the fall witnessed in the domestic bullion market. The rupee appreciated by 19 paise to ₹95.17 against the US Dollar. This is the fourth straight session of appreciation. RBI intervention reduced near-term demand for the dollar, helping limit speculative foreign exchange risk.
Traders said a stronger rupee makes importing dollar-denominated bullion cheaper, putting pressure on domestic prices. Investors are also monitoring international market movements. Saumil Gandhi, senior analyst for commodities at HDFC Securities, said that weak global cues and a strong rupee led to gold losses in the domestic market. According to Pankaj Singh, Smallcase Manager, Founder and Principal Researcher at SmartWealth.ai, festive demand in India and continued Chinese buying could arrest the decline. However, further strengthening of the rupee could curb domestic prices.