New Delhi, March 24 – Gold prices in the national capital dropped by Rs 700 to settle at Rs 90,550 per 10 grams on Monday amid sustained selling pressure from jewellers and stockists, as per agency report. The fall in domestic bullion prices also coincided with profit booking and liquidation of long positions following a recent rally.
The drop comes amid geopolitical developments, particularly the expectation of a possible peace deal between Russia and Ukraine, following discussions held on Sunday in Saudi Arabia involving US and Ukrainian officials. This led to easing concerns over geopolitical risks, resulting in a pullback from gold’s record highs.
According to the All India Sarafa Association, the price of gold with 99.9 percent purity stood at Rs 90,550 per 10 grams, down from Rs 91,250 in the previous session. Similarly, gold with 99.5 percent purity also saw a decline of Rs 700, closing at Rs 90,100 per 10 grams.
Despite the decline in gold, silver prices witnessed a marginal rise. The price of silver increased by Rs 200 to Rs 1,00,500 per kilogram, up from Friday’s closing of Rs 1,00,300 per kilogram.
Chintan Mehta, CEO of Abans Financial Services, noted that while global tensions may have eased slightly with hopes of a peace accord, ongoing conflict in the Middle East continues to support demand for gold as a safe-haven asset. Israel’s renewed military actions in Gaza have added to the uncertainty, thereby providing a floor to gold prices.
Looking ahead, expectations of further interest rate cuts by the US Federal Reserve may continue to support the bullish sentiment in gold, even amid short-term volatility.
In the international markets, spot gold rose by 0.22 percent to USD 3,028.90 per ounce. Investors are now awaiting key macroeconomic indicators scheduled for release on Monday, including the preliminary S&P Global Manufacturing PMI data and a speech by Federal Reserve member Raphael Bostic, which may influence market sentiment further.
