Gold prices extended their losing streak for the sixth straight session, falling ₹2,100 to ₹1.56 lakh per 10 grams in the national capital on Wednesday, tracking a bearish trend in the global markets.
The yellow metal of 99.9 per cent purity depreciated by ₹2,100 to nearly a three-week low of ₹1,56,100 per 10 grams (inclusive of all taxes) from Tuesday’s closing level of ₹1,58,200 per 10 grams.
The metal has lost ₹11,000 in the past six trading sessions from ₹1,67,100 recorded on August 25.
Gold was last seen around the current levels on August 14, when it was quoted at ₹1,56,200 per 10 grams.
“Precious metals remained under heavy selling pressure on Wednesday, with spot gold falling to its lowest level in more than three weeks,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Silver also joined the slide for a second straight day, plunging ₹5,000 to a two-week low of ₹2,35,500 per kilogram (inclusive of all taxes). The white metal had settled at ₹2,40,500 per kg in the preceding session, local traders said.
The escalation in the West Asia conflict has lifted oil prices and stoked inflation and rate hike fears, adding pressure on silver, Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking, said.
Global markets
In the international markets, spot gold gained $25.24, or 0.58 per cent, to $4,303.12 per ounce, while silver dropped nearly 1 per cent to $63.64 per ounce.
Spot gold continues to grapple with fears of an interest rate hike by the US Federal Reserve, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Higher oil prices have coincided with hawkish comments from Federal Reserve Chair Kevin Warsh, who has called for action if elevated inflation does not ease quickly, Singh added.
Meanwhile, global gold-backed exchange-traded funds recorded net outflows after seven consecutive sessions of inflows as rate-hike concerns resurfaced.
Crude prices also surged as renewed military exchanges between the US and Iran pushed oil rates higher, which added another layer to inflation concerns.
Vedika Narvekar, Research Analyst – Commodities & Currencies, Anand Rathi Share and Stock Brokers Ltd, said investors are awaiting the upcoming US labour market data for cues on the Federal Reserve’s next move.