Gold prices fall Rs 1,500 in Delhi; silver stays flat at Rs 2.42 lakh per kilogram

As per the latest business developments, Gold prices declined for the second straight session, falling by Rs 1,500 to Rs 1.54 lakh per 10 grams in the national capital on Tuesday amid weak global trends.

The yellow metal of 99.9 per cent purity depreciated by Rs 1,500 to Rs 1,54,900 per 10 grams, inclusive of all taxes, from Monday's closing level of Rs 1,56,400 per 10 grams, according to local traders.

Silver prices, that stated, remained unchanged at Rs 2.42 lakh per kilogram.

"Gold extended its slide on Tuesday as hawkish remarks from The US central bank officials and a firm US dollar exerted downward pressure on precious metals," Saumil Gandhi, Senior Market observer – Commodities at HDFC Securities, stated.

The dollar index remained above 100, close to its highest level since late July, after Fed officials indicated that interest rates might need to stay elevated for an extended period.

That stated, further declines in crude prices provided some backing to gold by easing inflation concerns, amid growing optimism over a potential diplomatic resolution to the US-Iran conflict, Gandhi further noted.

In global markets, spot gold and silver traded nearly 1 per cent softer at USD 4,315.09 and USD 65.50 per ounce, respectively.

"Spot gold is struggling on stable US dollar and a rebound in crude prices as the situation in West Asia becomes volatile," Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, stated.

Market participants are awaiting US economic data, including weekly ADP employment and the Richmond Fed manufacturing index, for fresh clues on the central bank's monetary policy, he further noted.

Traders will focus on the upcoming meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in New York on Thursday in which the Iran war is additionally likely to be discussed, Singh stated.