Gold Prices Slip Rs 500 As Crude Oil Climbs

SRINAGAR: Gold prices fell Rs 500 per 10 gram in the national capital on Monday as a sharp rise in crude oil prices and a stronger US dollar put pressure on precious metals.

Gold of 99.9 per cent purity was trading at Rs 1,55,400 per 10 gram, compared to Rs 1,55,900 at the close of business on Friday.

Silver, meanwhile, held steady at Rs 2,34,600 per kilogram, inclusive of taxes, according to local traders.

In international markets, spot gold fell 1.3 per cent to USD 4,291.71 an ounce, while silver declined nearly 3 per cent to USD 62.82.

The sell-off came as investors reassessed the outlook for US interest rates, with expectations of further tightening weighing on bullion demand.

Gold has slipped back towards USD 4,300 an ounce, while silver has extended its losses for a third consecutive week.

The rise in crude oil prices has added to concerns over inflation. Oil climbed to USD 103 a barrel, its highest level in four months, after Saudi Arabia shut its East-West pipeline following drone attacks.

Higher energy costs could further complicate the interest-rate outlook, with the Australia and New Zealand Banking Group forecasting three 25-basis-point rate hikes by the US Federal Reserve by March 2027.

The bank expects developments in West Asia and elevated energy prices to keep inflationary pressures high. At the same time, prolonged geopolitical uncertainty could support gold’s safe-haven appeal.

Despite the recent weakness, ANZ retained its 12-month gold price target of USD 5,400 an ounce.

The outlook remains supported by recovering gold-backed ETF holdings, speculative positions, institutional demand in China and growing investor participation in India.