Gold drops ₹400 to ₹1,00,020/10 g, silver plunges ₹1,500

Gold prices dropped ₹400 to ₹1,00,020 per 10 grams in the national capital on Wednesday due to continuous selling by stockists, according to the All India Sarafa Association.

The precious metal of 99.9% purity had settled at ₹1,00,420 per 10 grams in the previous market close.

In the local market, gold of 99.5% purity slipped ₹350 to ₹99,700 per 10 grams (inclusive of all taxes) on Wednesday. It had closed at ₹1,00,050 per 10 grams on Tuesday.

"Gold prices extended losses on Wednesday as the US dollar continued to trade with minimal gains, surging to a one-week high. A decline in the geopolitical risk premium followed a positive outcome from President Donald Trump's meetings with Vladimir Putin, Volodymyr Zelenskyy, and European leaders.

"This development raised hopes for a potential resolution to the ongoing conflict, which appears to be the leading factor in the decline in gold prices in recent times," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.

Additionally, silver prices plunged ₹1,500 to ₹1,12,500 per kilogram (inclusive of all taxes) on Wednesday. The white metal had ended at ₹1,14,000 per kg on Tuesday.

In the overseas markets, spot gold was trading marginally higher at $3,326.04 per ounce.

"Gold prices inched lower to their lowest level in nearly three weeks as the dollar strengthened, while investors awaited US Federal Reserve Chair Jerome Powell's last speech at the Jackson Hole symposium on Friday.

"Meanwhile, the US dollar index climbed to its highest level in more than a week and USD/INR fell to 87, weighing further on domestic prices," Manav Modi, Analyst, Precious Metal Research, Motilal Oswal Financial Services, said.

However, spot silver was trading at $37.07 per ounce, down by nearly 1% in the global markets.

Investors will closely watch the Federal Reserve's meeting minutes to be released later in the day, which is anticipated to offer further insights into the central bank's monetary policy stance and bullion price trajectory, Modi added.