Delhi gold drops Rs 2,700 to Rs 1,58,200 per 10 grams, extending its five-session decline to Rs 8,900, while silver falls Rs 5,000 per kg.

Delhi gold drops Rs 2,700 to Rs 1,58,200 per 10 grams. |

New Delhi: extended their decline for a fifth straight session on Tuesday, falling Rs 2,700 to Rs 1,58,200 per 10 grams in Delhi as a sharp global bullion sell-off deepened domestic pressure.

Gold of 99.9 percent purity closed at a nearly two-week low, against Rs 1,60,900 per 10 grams on Monday, according to local traders. Prices were last near this level on August 19, at Rs 1,58,000.

Five-day fall reaches Rs 8,900

The yellow metal has now lost Rs 8,900, or 5.3 percent, across five sessions from Rs 1,67,100 per 10 grams recorded on August 25.

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also weakened sharply, declining Rs 5,000 to Rs 2,40,500 per kg. The white metal had finished unchanged at Rs 2,45,500 per kg in the previous session. Domestic prices include all taxes.

Renewed tensions between the US and Iran pushed crude oil prices higher, raising inflation concerns and placing greater focus on the interest-rate outlook.

Global bullion faces sell-off

Spot gold dropped USD 80.61, or 2 percent, to USD 4,368.58 per ounce in overseas trade. Silver slid nearly 3 percent to USD 64.68 per ounce.

Praveen Singh of Mirae Asset ShareKhan said gold remained under pressure after US Federal Reserve Chair Kevin Warsh’s hawkish Jackson Hole speech kept the possibility of interest-rate increases elevated.

Markets are pricing in a 60 percent probability that the US central bank will raise rates at its September 16 Federal Open Market Committee meeting, he added.

Modi comments weigh on sentiment

Prime Minister Narendra Modi urged consumers to avoid unnecessary gold purchases while promoting Swadeshi and self-reliance. He also called for fewer foreign holidays and overseas weddings.

Vedika Narvekar of Anand Rathi Share and Stock Brokers said the remarks were unlikely to significantly influence international prices but could affect domestic sentiment and near-term jewellery demand expectations.

Investors will now track US manufacturing and services activity data due this week. Attention will then turn to Friday’s August non-farm payrolls report for further signals about monetary policy and the direction of bullion prices over the next several trading sessions.

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