Gold Drops Rs 1,670 to Rs 1,31,530 per 10g as Global Cues Turn Weak; Silver Jumps to Rs 1,81,360 per kg in Sixth Straight Session
Gold Drops Rs 1,670 to Rs 1,31,530 per 10g as Global Cues Turn Weak; Silver Jumps to Rs 1,81,360 per kg in Sixth Straight Session
Gold prices in the national capital fell sharply by Rs 1,670, closing at Rs 1,31,530 per 10 grams on Tuesday, influenced by subdued trends in international markets, according to the All India Sarafa Association. In the previous session, 99.9% pure gold had traded at Rs 1,33,200 per 10 grams.
“Gold slipped today as traders booked profits after prices touched multi-week highs in the last session. Additionally, investors are taking a cautious approach ahead of important US economic data expected later this week,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Meanwhile, silver maintained its upward streak for the sixth consecutive session, surging by Rs 4,360 to Rs 1,81,360 per kilogram, inclusive of all taxes. On Monday, silver had closed at Rs 1,77,000 per kilogram, as per the association.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, pointed out that domestic bullion is receiving support from a notably weak Indian rupee, which has dropped to a record low of 89.95 against the US dollar amid trade deal uncertainties.
On the international front, spot gold declined USD 45.17, or 1.07%, to USD 4,187 per ounce, while silver was down 1.77% at USD 56.97 per ounce. “Gold eased to around USD 4,200 on profit-taking, while silver fell nearly 2% to USD 57 as investors took a pause after a six-day rally and awaited key US economic data later in the week,” noted Kaynat Chainwala, AVP Commodity Research at Kotak Securities.
She added that recent US economic data contributed to a cautious sentiment, with the Institute for Supply Management reporting that manufacturing activity contracted for the ninth straight month, intensifying pressure on the Federal Reserve to ease policy.
Renisha Chainani, Head of Research at Augmont, said that expectations of a more dovish stance by the incoming US Fed Chair are helping limit losses in both gold and silver. The white metal had surged to a record high of USD 58.83 per ounce in overseas trade on Monday, driven by strong investor demand amid tight physical supply.
Looking ahead, Chainani stated, “Silver historically performs well in December, with gains of nearly 17% in 1997 and 2020. This seasonal trend may strengthen the current price momentum for December, with targets of USD 60 (around Rs 1,80,000 per kg) and USD 62 (around Rs 1,86,000 per kg), assuming supply remains tight.”
