Gold dips Rs 170 to Rs 78,130 per 10 gm, silver plunges Rs 1,850
Gold prices extended the slide for the third straight session and fell Rs 170 to Rs 78,130 per 10 grams in the national capital on Friday amid selling by jewellers and stockists, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity ended at Rs 78,300 per 10 grams on Thursday.
Silver prices plunged Rs 1,850 to Rs 88,150 per kg due to reduced offtake by industrial units and coin makers. The white metal closed at Rs 90,000 per kg in the previous session.
The price of gold of 99.5 per cent purity went lower by Rs 170 to Rs 77,730 per 10 grams against the previous close of Rs 77,900 per 10 grams.
Traders attributed the fall in yellow metal prices to lacklustre demand from local jewellers.
In futures trade on the MCX, gold contracts for February delivery rose Rs 50 or 0.07 per cent to trade at Rs 75,701 per 10 grams on Friday.
"Gold witnessed minor buying as the USD 2,600-level on Comex acted as a temporary support, alongside Rs 75,500 in the domestic MCX market. The momentum remains volatile due to uncertainties surrounding the interest rate cycle.”
"Although the Fed decided to keep rates lower, its projections indicated fewer rate cuts going forward, which has maintained pressure on gold prices for the past two days," Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.
Meanwhile, silver futures contracts for March delivery slumped Rs 647 or 0.74 per cent to Rs 86,540 per kg on the Multi Commodity Exchange (MCX).
Globally, Comex gold futures advanced USD 13.10 to USD 2,621.20 per ounce.
"Market players will watch the core Personal Consumption Expenditures (PCE) prices index data due later today, and more selling will be witnessed in precious metals counters if the actual figure comes above estimates," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
According to Kotak Securities, Comex gold futures saw some recovery and traded near USD 2,620 per ounce on Friday, but headed for weekly decline as investors reassessed interest rate expectations following the US Federal Reserve's latest decision.
Despite a rate cut, Fed Chair Powell's emphasis on continued inflation progress tempered expectations for further easing. Resilient economic data, including upwardly revised consumer spending, further weakened the case for imminent rate cuts, the brokerage firm said.
Silver quoted 0.41 per cent lower at 29.29 per ounce in the overseas market.
"With central banks actively accumulating gold to hedge against global risks and rising geopolitical tensions, including heightened unrest in the Middle East and uncertainty surrounding economic policies under Trump's presidency next month, the long-term outlook for the yellow metal remains highly attractive as a safe-haven asset," Abans Holdings' Chief Executive Officer Chintan Mehta said.
