Gold and silver prices declined for a third straight session in the national capital on Friday as rising crude oil prices and a stronger US dollar weighed on investor sentiment.
The 99.9 per cent pure gold slumped by Rs 1,900 to Rs 1,46,100 per 10 grams, inclusive of all taxes, from Thursday's closing level of Rs 1,48,000 per 10 grams, according to the All India Sarafa Association.
Silver tumbled Rs 5,500 to Rs 2,02,000 per kilogram, from the previous close of Rs 2,07,500 per kg, marking its decline for a third straight session. The white metal has lost Rs 30,000, or 13 per cent, since September 30, reflecting mounting pressure on the metal amid a broader selloff in the commodity markets.
"Domestic gold prices fell to their lowest level since early July, tracking bearish global cues," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Pinky Yadav, Commodity - Fundamental Analyst at Choice Broking, said silver prices have declined around 14 per cent over the past month amid a broader equity-market selloff, as investors liquidated precious metals to cover losses in technology stocks.
She added that a stronger US dollar, rising bond yields, and persistent inflation fears driven by escalating geopolitical tensions in West Asia have pushed crude oil prices higher towards $115 per barrel, increasing expectations that interest rates may remain elevated for longer and further weighing on prices. Globally, spot gold slipped below $4,000 per ounce before recovering to trade flat at $4,024.37 per ounce, while silver dropped 1.41 per cent to $53.83 per ounce. Spot gold touched a fresh cycle low of $3,986 per ounce in overseas markets, said Praveen Singh, Head of Commodities at Mirae Asset Sharekhan.
The dollar index and Treasury yields were slightly firmer as Brent oil futures remain elevated, he added.