Gold extends losses to ₹1.48 lakh per 10gm amid tepid demand

Gold prices slumped to a one-week low on Wednesday as persistent weakness in global markets and muted retail demand in India weighed on the yellow metal. Prices of 99.9 per cent purity gold fell ₹700 to ₹1,48,900 per 10 grams, inclusive of all applicable taxes, down from Tuesday's closing of ₹1,49,600, according to dealers in the national capital.

Analysts attributed the decline to a combination of factors affecting the precious metal globally and domestically. A rebound in crude oil prices, driven by renewed concerns over supply disruptions stemming from escalating tensions in West Asia, added pressure to gold valuations. Subdued retail demand in the domestic market further dampened sentiment, with traders noting a lack of buying interest from jewellers and investors.

However, depreciation in the Indian rupee provided some support to gold prices. The rupee weakened 43 paise to close at 96.78 (provisional) against the US dollar, which typically makes the precious metal relatively cheaper for overseas buyers and can limit downside movement. Commodity analysts expect gold to remain sensitive to global cues and currency movements in the coming sessions.