Silver prices plunged by Rs 6,000 to Rs 2.56 lakh per kilogram in the national capital on Wednesday, while gold dropped by Rs 1,000 to Rs 1.60 lakh per 10 grams due to bearish domestic sentiment, according to the All India Sarafa Association.The white metal declined by Rs 6,000, or 2.28 per cent, to Rs 2,56,500 per kg (inclusive of all taxes) from Tuesday’s closing level of Rs 2,62,500 per kg.
In the bullion market, gold of 99.9 per cent purity dipped by Rs 1,000, or 0.62 per cent, to Rs 1,60,300 per 10 grams (inclusive of all taxes). The yellow metal had closed at Rs 1,61,300 per 10 grams, up by Rs 1,050.
Gold prices declined as a wave of profit booking by traders met lacklustre physical demand, Dilip Parmar, Senior Research Analyst at HDFC Securities, said.
In the international market, spot silver was trading 0.79 per cent higher at USD 79.92 per ounce, while gold fell USD 16.10, or 0.32 per cent, to USD 4,989.65 per ounce.
Precious metal prices exhibited a mixed performance on Wednesday, with gold trading lower at around USD 4,990 per ounce, while silver gained to USD 79.70 per ounce, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
He added that the recent volatility in the bullion market is largely attributed to investor sentiment ahead of the US Federal Reserve’s upcoming policy decision.
This has created a cautious atmosphere, especially amid rising inflation concerns linked to high oil prices stemming from geopolitical tensions in West Asia, Garg said.
Investors are closely monitoring the outcome of the US Federal Reserve’s policy meeting for cues on interest rate trajectory, which is expected to influence policy outlook and gold and silver prices.
