Silver, gold rally falters as West Asia tensions resurface

New Delhi: Silver prices declined by Rs 7,800 to Rs 2.43 lakh per kilogram in the national capital on Thursday while gold fell to Rs 1.54 lakh per 10 grams as investors booked profits amid concerns over the durability of the fragile ceasefire in West Asia.

According to the All India Sarafa Association, the white metal depreciated by Rs 7,800, or 3.10 per cent, to Rs 2,43,200 per kg (inclusive of all taxes) from Wednesday’s closing level of Rs 2,51,000 per kg.

Gold of 99.9 per cent purity also decreased by Rs 1,500, or nearly 1 per cent, to Rs 1,54,900 per 10 grams (inclusive of all taxes). The yellow metal had finished at Rs 1,56,400 per 10 grams in the previous market session.

Analysts said precious metals witnessed selling pressure as uncertainty around the ceasefire between the US and Iran weighed on investors’ sentiment.”Gold prices de-clined on Thursday, reversing most of the previous session’s gains as investors reassessed the frag-ile ceasefire in West Asia,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

He added that the ongoing sporadic fighting, uncertainty over the reopening of the Strait of Hormuz, and reports of halted tanker movements alongside the alleged ceasefire breaches weighed on market sentiment. “Persistent doubts over the durability of the two-week truce have revived concerns about elevated energy prices and inflation pressures,” Gandhi added.