Overview
- Profit-taking drove domestic gold down by Rs 2,800 to Rs 1,57,000 per 10 grams and pushed silver lower by Rs 6,000 to Rs 2,40,000 per kilogram.
- International spot markets echoed the move with spot gold about 0.43% lower at roughly USD 4,389.67 per ounce and spot silver near USD 65.03 per ounce.
- Analysts said the CPI result had already been priced into bullion during the recent rally, so the print removed an immediate upside catalyst and prompted traders to lock in gains.
- Market attention has shifted to the upcoming US Producer Price Index and Federal Reserve signals because a weaker PPI could lift precious metals while a stronger PPI might trigger further selling.
- Crude oil softness linked to conflicting claims near the Strait of Hormuz and a steady dollar index are additional factors that could influence metals and inflation expectations in the near term.