After reaching record highs in recent sessions, gold prices in India retreated slightly this week as traders repositioned ahead of key signals from global central banks, particularly the U.S. Federal Reserve.
In domestic markets, 24-carat gold prices fell by ₹10 per 10 grams, settling at ₹1,00,360, while 22-carat gold dropped to ₹91,990. The pullback follows an extended rally, driven in part by geopolitical tensions in the Middle East and persistent global inflation concerns.
In Kolkata, which had previously seen prices surge beyond ₹1,03,000, gold has now stabilized around ₹1,01,500, reflecting a broader cooling in investor enthusiasm as markets await monetary policy direction.
Global Gold Market Holds Steady
On the international stage, spot gold prices held firm at approximately $3,388 per ounce during Asian trading hours. While some investors opted to book profits following the recent rally, gold’s role as a safe-haven asset remains intact, supported by macroeconomic uncertainties and geopolitical risks.
Traders and analysts are focused on the outcome of the U.S. Federal Reserve’s policy meeting, with expectations centering on updated guidance rather than an immediate interest rate adjustment. Any signal regarding future rate cuts or inflation concerns could significantly influence gold’s trajectory in the coming weeks.
Silver Extends Gains as Investors Diversify
In contrast to gold’s modest decline, silver prices advanced by ₹100 per kilogram, climbing to ₹1,10,100. Market participants cited increasing industrial demand and portfolio rebalancing as key drivers behind the metal’s recent gains.
“Investors are diversifying their exposure across precious metals, particularly as gold approaches historically high levels,” said one commodity analyst. “Silver’s dual role as both a monetary and industrial asset gives it added resilience in times of uncertainty.”
Crude Oil Declines Offer Inflation Relief; Rupee Under Pressure
Energy markets also showed movement, with Brent and WTI crude oil futures retreating by up to 1.6% overnight, offering some respite from inflationary pressures that have weighed heavily on import-dependent economies like India.
Despite the dip in crude, the Indian rupee continues to trade near two-month lows, hovering between ₹86.38 and ₹86.42 against the U.S. dollar. The currency has been pressured by elevated oil import bills and a broader risk-averse sentiment in global markets.
Currency traders are now watching the ₹86.50 level closely, a key psychological and technical support that, if breached, could signal further weakness in the rupee. Market observers expect the Reserve Bank of India (RBI) to monitor developments carefully, particularly in response to oil prices and U.S. monetary policy shifts.
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