NEW DELHI, SEPTEMBER 29: Gold prices in the national capital fell sharply on Tuesday, declining by Rs 1,400 per 10 grams and slipping below the Rs 1.50 lakh mark for the first time in two months.
According to market data, gold prices have come under pressure amid a broader decline in international bullion markets. The latest fall comes after gold prices witnessed a sharp correction in recent trading sessions.
On the Multi Commodity Exchange (MCX), gold futures also remained under pressure, with prices falling to around Rs 1.48 lakh per 10 grams. Gold prices have declined sharply over the past two sessions, while silver has also witnessed a significant fall.
Market analysts have attributed the weakness in precious metals to rising US Treasury yields, a stronger dollar and growing expectations of further interest-rate hikes by the US Federal Reserve. Higher yields tend to reduce the appeal of gold, which does not provide interest income.
Rising crude oil prices have also added to inflation concerns and strengthened expectations of tighter monetary policy, putting further pressure on bullion prices.
The decline in gold prices comes after a period of strong gains in the precious-metal market, with the latest correction bringing prices to their lowest levels in several weeks.
Silver has also followed the downward trend, with prices falling significantly in domestic markets.
Despite the recent correction, analysts have noted that gold demand could receive support from central-bank purchases and the upcoming festive season in India, although near-term prices are likely to remain sensitive to movements in global yields, the US dollar and interest-rate expectations.
