Gold prices declined for the third consecutive trading session in the national capital on Wednesday, falling by Rs 100 to Rs 1,58,000 per 10 grams amid subdued demand in the domestic market.
According to the All India Sarafa Association, 99.9 per cent purity gold had closed at Rs 1,58,100 per 10 grams in the previous session.
Silver, however, moved in the opposite direction and extended its gains for the second consecutive session. The precious metal jumped Rs 2,300 to Rs 2,43,400 per kg, compared with Rs 2,41,100 per kg on Tuesday.
Gold trades in a narrow range
Gold remained range-bound as investors adopted a cautious approach ahead of key US inflation data due later this week.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said investors were closely watching the upcoming inflation data, while rising crude oil prices had renewed concerns over persistent inflation amid escalating tensions in West Asia.
Higher energy costs could add to inflationary pressures and strengthen expectations that interest rates may remain elevated, potentially limiting the upside in bullion prices.
Global gold and silver prices
In the international market, spot gold gained USD 43.67, or around 1 per cent, to USD 4,399.22 per ounce. Silver also rose nearly 1 per cent to USD 66.25 per ounce.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said spot gold recovered after recent losses as traders awaited an announcement from US Treasury Secretary Scott Bessent on the long-term debt buyback programme.
Market participants are also closely tracking US Producer Price Index (PPI) and Consumer Price Index (CPI) data scheduled for release later this week. The inflation figures could influence expectations around the US Federal Reserve’s interest-rate decision in September.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, said the US inflation data would be crucial in determining whether persistent price pressures could justify a September Fed rate hike.
The precious metals market is therefore expected to remain volatile as investors assess inflation trends, interest-rate expectations, crude oil prices and geopolitical developments.