NEW DELHI: Gold prices fell for the third straight session, sliding by Rs 960 to Rs 1.53 lakh per 10 grams in the national capital on Thursday, while silver slumped by Rs 6,660 as the precious metals lost their safe-haven appeal amid a rally in stock markets.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity declined by Rs 960 to Rs 1,53,440 per 10 grams (inclusive of all taxes) from Wednesday's closing level of Rs 1,54,400 per 10 grams.
Silver also witnessed heavy selling pressure, plunging by Rs 6,660 to Rs 2,48,740 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,55,400 per kg in the preceding session.
Analysts said the decline came as domestic equities remained firm and the rupee appreciated against the US dollar, prompting investors to rotate away from bullion despite a modest rebound in global precious metal prices.
Market participants also assessed the implications of the US Federal Reserve's latest policy decision and comments from new Fed Chair Kevin Warsh.
"Gold prices witnessed sharp weakness following the Federal Reserve policy announcement, as comments from new Fed Chair Kevin Warsh suggested the possibility of one interest rate hike in 2026, if the US economy continues to remain resilient," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
The Fed's assessment of steady economic growth and a healthy labour market strengthened the dollar and weighed on bullion prices, he added.
Globally, spot gold rose marginally at USD 4,266.47 per ounce, while silver went up by 0.38 per cent to USD 68.17 per ounce after US President Donald Trump and his Iranian counterpart Masoud Pezeshkian digitally signed the memorandum of understanding aimed to end hostilities and create a framework for negotiations on Iran's nuclear programme.
"Progress toward an interim peace agreement between the United States and Iran has helped ease geopolitical risks and inflation concerns, providing some support to bullion," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.