Gold and silver prices declined for a second consecutive day on Friday, June 26, reflecting the impact of selling pressure in global markets and the US Federal Reserve's firm stance on interest rates.
Amid global economic signals and the influence of US monetary policy, precious metals remained under pressure due to a ber US dollar, uncertainty over interest rates, and profit booking in international markets.
Market experts said that despite the recent decline, gold prices could regain momentum over the longer term. However, in the short term, investors will continue to monitor the US Federal Reserve's upcoming policy decisions and global economic developments.
The price of 24-carat gold declined by Rs 940 per 10 grams on Friday.
The price of 24-carat gold stood at Rs 1,40,130 per 10 grams, compared with the previous price of Rs 1,41,070 per 10 grams.
The price of 22-carat gold also declined.
The price of 22-carat gold stood at Rs 1,28,360 per 10 grams, compared with the previous price of Rs 1,29,220 per 10 grams.
This marked a decline of Rs 860 per 10 grams in the price of 22-carat gold.
Silver prices also continued to soften.
Silver was priced at Rs 2,34,900 per kilogram on Friday, compared with the previous price of Rs 2,35,000 per kilogram.
In the previous trading session, silver prices had recorded a sharp decline of about Rs 10,000 per kilogram. Friday's session saw an additional decline of Rs 100 per kilogram.
According to experts, the decline in precious metal prices is being driven by several global economic factors. The primary factor is the strengthening of the US dollar. The dollar index has reached recent monthly highs, making dollar-denominated investments more attractive. Typically, when the US dollar strengthens, demand for safe-haven assets such as gold and silver weakens.
In addition, the reduced likelihood of an immediate interest rate cut by the US Federal Reserve has affected investor sentiment. In a higher interest rate environment, non-interest-bearing assets such as gold are generally considered relatively less attractive. These factors have prompted profit booking by several investors in recent days, increasing pressure on gold and silver prices in international markets.
