Gold Prices Tumble Amid Dollar Surge and Inflation Concerns

Gold prices fell sharply on Thursday, dropping Rs 700 to Rs 77,050 per 10 grams due to weak global demand. The strengthening US dollar and inflation fears fueled the decline. Silver prices also saw a significant drop, falling Rs 2,310 to Rs 90,190 per kg.

Gold prices experienced a severe decline on Thursday, decreasing by Rs 700 to settle at Rs 77,050 per 10 grams in India's capital. This drop is attributed to a global demand slump, as reported by the All India Sarafa Association.

In a continuation of recent losses, gold of 99.5 per cent purity fell to Rs 76,650 per 10 grams, down from Rs 77,350 on Wednesday. Additionally, silver was not immune to the market sentiment, plummeting by Rs 2,310 to Rs 90,190 per kg.

The decline in gold pricing coincides with a rising US dollar, buoyed by higher-than-expected US CPI data. Analysts suggest that the potential halt in Fed rate cuts could keep the dollar strong and gold under pressure.

(With inputs from agencies.)