Gold Rate In Delhi Slips Rs 150, Silver Drops Rs 5,000 as Strong US dollar Dents Bullion Demand

New Delhi, July 6: Gold prices slipped Rs 150 to Rs 1,50,650 per 10 grams in the national capital on Monday, and silver dropped Rs 5,000, as a sluggish global trend and a firm US dollar prompted traders to trim positions in precious metals.

The precious metal of 99.9 per cent purity had closed at Rs 1,50,800 per 10 grams in the preceding session.

Silver snapped its four-day rally, declining Rs 5,000 to Rs 2,40,000 per kilogram (inclusive of all taxes) from Friday’s closing level of Rs 2,45,000 per kg, according to local dealers.

Traders said the market remained range-bound as investors balanced lingering geopolitical risks in West Asia against a stronger greenback and expectations surrounding the US Federal Reserve’s monetary policy.

“Gold prices experienced a slight decline in the domestic markets on Monday, as investors navigated the complex landscape of Washington-Tehran relations while awaiting key inflation data from the US,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.

In the international markets, spot gold and silver edged lower to USD 4,160.60 and USD 62.24 per ounce, respectively.

“The yellow metal has slipped in the overseas trade on a firmer dollar as traders continue to discount an interest rate hike this year by the US Federal Reserve,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

He said investors will keep a close watch on the US ISM Services (June) numbers and other macroeconomic indicators for fresh signals on the Federal Reserve’s monetary policy move.

On the outlook, Singh noted that the precious metal is expected to maintain a positive bias on optimism over easing inflation and weak US jobs data.

However, expectations that the Fed could keep interest rates elevated for longer are likely to limit any sharp upside in prices, he added.

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