New Delhi: for a second consecutive session on Thursday, falling Rs 800 to Rs 1,65,700 per 10 grams in Delhi, one day before Rakshabandhan.
Domestic gold weakens
The precious metal of 99.9 percent purity had settled at Rs 1,66,500 per 10 grams on Wednesday. It has now lost Rs 1,400 across two sessions after touching Rs 1,67,100 on Tuesday.
Silver, however, remained unchanged at Rs 2,50,500 per kilogram, inclusive of taxes, according to local dealers.
The fall came before Rakshabandhan, when families traditionally increase spending on jewellery and presents.
form an important part of gifts exchanged between brothers and sisters during the festival.
Dollar and yields weigh
Gold came under pressure as the US dollar and Treasury bond yields recovered following stronger-than-expected American inflation data.
A firmer dollar makes bullion more expensive for buyers holding other currencies, while rising yields reduce the attraction of non-interest-bearing gold.
Globally, spot gold edged lower to USD 4,585.88 per ounce. Market experts said the inflation reading had increased expectations of a possible interest-rate increase by the US Federal Reserve.
Investors are now awaiting Federal Reserve Chair Kevin Warsh’s Jackson Hole address on Friday.
Any indication about the central bank’s approach to inflation and borrowing costs could move the dollar, Treasury yields and precious-metal prices.
Silver shows resilience
International silver performed better, gaining 0.31 percent to USD 68.32 per ounce. The metal hovered near USD 68 as investors continued seeking safe-haven assets. In India, silver stabilised after an earlier bout of selling.
Crude oil, meanwhile, remained under pressure as the possibility of the Strait of Hormuz reopening increased.
A reopening could ease concerns over global energy supplies and reduce the geopolitical premium built into crude prices.
Markets will also monitor the US July advance trade balance and weekly employment data for fresh signals about economic conditions and monetary policy.
These releases, alongside the Jackson Hole speech, may guide the next move in bullion, the dollar and government bond yields.