As inflation weighs, gold, silver extend losing streak

MUMBAI: Precious metal prices crashed on Thursday after oil rallied to a near three-year high, raising inflation concerns and the US Federal Reserve maintained a status quo on rates. As a result, the price of gold on New York Commodity Exchange (Comex) crashed nearly 6% and was trading just above the $4,600/ounce (Oz) in late trades Thursday. Silver also took a big hit and was down nearly 10% at $70.3/Oz.In the domestic market, late on Thursday on MCX, gold futures contracts for April delivery were trading at Rs 1.45 lakh/10gram, down 5.3% or Rs 8,100. And silver futures for May delivery were trading at Rs 2.3 lakh/kg, down nearly 7% or Rs 17,100.According to Manav Modi, commodities analyst, Motilal Oswal Financial Services, gold prices slid on comex as the US Fed held interest rates steady and signalled uncertainty over the inflationary and economic impact of rising oil prices. The rate decision by Fed strengthened the dollar, and a strong dollar usually pulls down the price of precious metals.