New Delhi: Gold and silver prices retreated from their historic peaks on Wednesday as profit-taking and US Federal Reserve Chair Jerome Powell’s cautious comments on interest rates weighed on sentiment.
According to the All India Sarafa Association, gold of 99.9% purity fell ₹900 to ₹1,18,000 per 10 grams, after touching a record high of ₹1,18,900 in the previous session. Similarly, gold of 99.5% purity also dropped ₹900 to ₹1,17,400 per 10 grams, down from its all-time high of ₹1,18,300.
“Gold prices have slightly retreated from their record high, weighed down by a recovery in the US dollar and hawkish remarks made by Powell,” said Saumil Gandhi, Senior Analyst at HDFC Securities.
Silver Also Declines
Silver prices mirrored the fall, slipping ₹600 to ₹1,39,000 per kg, compared to Tuesday’s record of ₹1,39,600 per kg. Despite the decline, analysts noted that safe-haven demand continues to prevent any major correction in bullion.
Global Market Trends
In overseas markets, spot gold dipped to USD 3,760.36 per ounce, after hitting a fresh high of USD 3,791.11 on Tuesday. Spot silver was also down 0.38% at USD 43.87 per ounce, retreating from an intra-day high of USD 44.48.
“Investors booked profits after record highs, though prices remain near USD 3,760 per ounce as markets digest Powell’s cautious stance and await US inflation and jobs data,” said Kaynat Chainwala, AVP, Commodity Research, Kotak Securities.
Powell, in his remarks, acknowledged persistent inflation but highlighted rising risks to employment. He signaled that the Fed is moving toward a more neutral policy stance, with a rate cut expected in September.
Outlook
According to Renisha Chainani, Head of Research at Augmont, geopolitical tensions in Eastern Europe and the Middle East continue to underpin demand for precious metals. “Investors will also track further comments from Fed officials for clarity on monetary policy direction,” she added.
