Gold Prices Drop After Seven-Day Rally, Silver Also Declines

New Delhi, February 11 – After a continuous seven-day rally, gold prices in the national capital saw a decline of ₹200, closing at ₹88,300 per 10 grams on Tuesday. The drop in prices was attributed to global market sluggishness and sell-offs by stockists.

The 99.5% pure gold also dropped ₹200, settling at ₹87,900 per 10 grams, compared to the previous session's ₹88,100 per 10 grams. Silver followed a similar trend, plunging ₹900 to ₹96,600 per kilogram, after closing at ₹97,500 per kilogram in the previous session.

Market analysts linked the decline in gold prices to investors awaiting Federal Reserve Chair Jerome Powell's congressional testimony, which is expected to provide insights into the future interest rate policies of the U.S. Federal Reserve.

According to the All India Sarafa Association, 99.9% pure gold had reached an all-time high of ₹88,500 per 10 grams on Monday, after gaining ₹2,430 in a single session. Over the past seven trading sessions, gold surged by ₹5,660, marking a 6.8% increase. Since the beginning of the year, gold prices have risen by ₹8,910, a gain of 11.22%.

Jatin Trivedi, Vice President (Research - Commodities & Currency) at LKP Securities, noted that upcoming U.S. Consumer Price Index (CPI) data and Powell's testimony would be crucial for gold traders, as the Dollar Index remains around 108.

In the global market, COMEX gold futures for April delivery were trading lower at $2,933.10 per ounce, after briefly hitting a record high of $2,968.39 per ounce during intraday trading.

According to HDFC Securities Senior Analyst (Commodities) Saumil Gandhi, despite some profit booking, global concerns over trade wars and economic uncertainties are keeping gold prices above the $2,900 mark.

Meanwhile, COMEX silver futures also declined by nearly 1%, closing at $32.17 per ounce in the international markets.