CHENNAI: Gold and silver prices continued to decline on Monday, extending last week’s correction amid a stronger US dollar and easing safe-haven demand. In the Indian market, gold dropped below Rs 1.23 lakh per 10 grams, while silver also weakened following a global downtrend.
Commodity analysts in their reports attributed the fall to a rebound in the dollar index and firm US Treasury yields, which reduced investor appetite for non-yielding assets such as gold. Spot gold in the international market traded near $2,380 an ounce, down from last week’s highs, while silver hovered around $27.5 an ounce.
In domestic trade, 24-carat gold was quoted at around Rs 1,22,800 per 10 grams in key cities, while silver slipped below Rs 1,45,000 per kilogram. Traders said profit-booking after recent gains and reduced demand from jewellers ahead of the festive season contributed to the decline.
Market experts also noted that gold’s recent rally had stretched valuations, prompting some investors to lock in profits. However, they also pointed out that underlying support remains strong due to persistent global uncertainties, including geopolitical tensions and expectations of interest rate cuts by major central banks later this year.
A bullion analyst was quoted in report saying; “After a sharp run-up over the past month, the market is witnessing a healthy correction. Gold remains in a broader uptrend, but short-term volatility is likely to persist as investors adjust positions ahead of key US economic data.”
The near-term direction of precious metals will likely depend on US inflation and employment data, which could influence the Federal Reserve’s stance on interest rates. A softer economic outlook could renew buying interest in safe-haven assets, while stronger data may keep prices under pressure.
