Gold Slips Rs 400 to Rs 97,620: Fed Signals and Stockist Selling Weigh on Prices

Gold prices in India witnessed a notable decline on Friday, falling Rs 400 to Rs 97,620 per 10 grams in the national capital. The drop comes amid persistent selling by stockists and subdued global cues, reflecting investor caution ahead of key macroeconomic data and central bank decisions.

 

Domestic market trends and pricing dynamics

 

The All India Sarafa Association reported that gold of 99.9 percent purity closed at Rs 97,620 per 10 grams, down from Rs 98,020 in the previous session.

 

Gold of 99.5 percent purity also dipped by Rs 300 to Rs 97,500 per 10 grams, inclusive of all taxes.

 

Silver prices extended their losing streak, tumbling Rs 2,500 to Rs 1,09,500 per kilogram, following a Rs 3,000 drop earlier in the week.

 

The decline in precious metals was attributed to continuous offloading by stockists, who are adjusting inventories amid expectations of further price corrections.

 

Global cues and central bank influence

 

International spot gold traded marginally higher at $3,294.31 per ounce, up 0.12 percent, but remained under pressure due to a strengthening US dollar.

 

Spot silver slipped 0.75 percent to $36.44 per ounce in New York, reflecting weakness in industrial metals and cautious investor sentiment.

 

The US Federal Reserve held interest rates steady in the 4.25–4.50 percent range, but Chair Jerome Powell’s hawkish tone dampened hopes for a September rate cut.

 

The dollar index surged to a nine-week high, gaining over 2 percent this week, reducing the appeal of non-yielding assets like gold.

 

Analysts noted that the Fed’s stance has triggered a shift away from safe-haven assets, with investors rotating into riskier instruments amid signs of economic resilience.

 

Market commentary and investor outlook

 

Jateen Trivedi of LKP Securities said gold traded weak due to softness in global markets and lack of near-term rate cut signals.

 

Saumil Gandhi of HDFC Securities added that gold is set to close lower on a weekly basis, driven by reduced haven demand and dollar strength.

 

Manav Modi of Motilal Oswal highlighted that silver prices remained subdued due to weakness in industrial metals and global tariff uncertainties.

 

Market participants are now eyeing the US non-farm payroll data and any updates on trade tariffs, which could influence the next leg of movement in bullion prices.

 

Strategic implications and seasonal factors

 

With the festive season approaching in India, jewellers may look to replenish inventories at lower price points, potentially stabilizing demand.

 

However, elevated prices—still hovering near Rs 97,000 per 10 grams—may deter retail buyers unless further corrections materialize.

 

Institutional investors remain cautious, awaiting clarity on inflation trends and central bank policy before re-entering the gold market.

 

Conclusion: gold faces near-term headwinds amid macro uncertainty

 

The Rs 400 dip in gold prices reflects a confluence of domestic selling pressure and global macroeconomic signals. While the long-term outlook for gold remains supported by geopolitical risks and inflation hedging, short-term sentiment is being shaped by central bank rhetoric and currency movements. Investors are advised to monitor upcoming data releases and policy cues before making fresh allocations to precious metals.

 

Sources: Millennium Post, ThePrint