Falling for the second straight session, gold prices depreciated ₹500 to ₹98,870 per 10 grams in the national capital on Wednesday due to continuous selling by stockists, according to the All India Sarafa Association.
On Tuesday, the precious metal of 99.9% purity had declined by ₹200 to close at ₹99,370 per 10 grams.
Meanwhile, gold of 99.5% purity slipped ₹400 to ₹98,400 per 10 grams (inclusive of all taxes). It had settled at Rs 98,800 per 10 grams in the previous market session.
Also, silver prices declined by ₹1,000 to ₹1,11,000 per kilogram (inclusive of all taxes) on Wednesday. The white metal had finished at ₹1,12,000 per kg on Tuesday.
In contrast, spot gold rose by USD 16.41 or 0.49% to USD 3,341.37 per ounce in the global markets.
"Gold edged higher to USD 3,346 per ounce, supported by renewed tariff threats from President Donald Trump, who signalled possible levies on pharmaceuticals by the end of the month, with additional duties on semiconductors also under consideration.
"Risk appetite remains subdued as new tariffs targeting 25 countries, including Canada, Mexico, and the EU, are set to take effect on August 1," Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.
On the global front, spot silver went up nearly 1% to trade at USD 38.05 per ounce.
"Gold has been consolidating while silver has been breaking out. Silver prices pushed as high as USD 39 per ounce, first and foremost reflecting renewed investor interest.
"We have seen continued inflows into physically backed silver products during the past few weeks, and the open interest in the futures market has also been expanding, in particular in China. Technical traders further fuelled the rally after prices broke above important resistance levels," Carsten Menke, Head of Economics and Next Generation Research at Julius Baer, said.
Menke further stated that by judging the strength of the recent rally and the decline of the gold/silver ratio to around 85, silver does not appear particularly cheap anymore in comparison to gold.
"When the ratio was at 100, we highlighted silver's catch-up potential, but this seems to be very much exhausted as of now." According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, investors will be awaiting key US macroeconomic data, including Producer Price Index (PPI) and jobless claims, which will provide further insights for the trajectory of bullion prices
