Gold and Silver Take a Dip: Market Dynamics Amid Global Developments

Precious metals such as gold and silver saw a significant decline in prices in the national capital, driven by subdued local demand and broader market sell-off. This comes amid investor caution ahead of US inflation data, as easing geopolitical tensions and weak demand pressures further impact the market.

In a significant market movement on Friday, precious metals, including gold and silver, experienced a notable price decline in the national capital. Silver fell by over 5% to Rs 2.55 lakh per kilogram, and gold decreased by 1.5% to Rs 1.58 lakh per 10 grams, following local market trends.

The drop in prices is largely attributed to subdued demand and a wider market sell-off, as explained by Saumil Gandhi, a Senior Analyst at HDFC Securities. As investors turned cautious, anticipation grew around the upcoming US consumer inflation data, which could influence market sentiment.

In contrast, international markets saw spot silver gain 3% and gold rise nearly 1% in their respective trading. Analyst Kaynat Chainwala from Kotak Securities noted the potential for policy easing should inflation readings soften, though persistent inflation might maintain Federal Reserve's current stance, keeping pressure on prices amid easing geopolitical tensions.