NEW DELHI, Nov 14 : Gold prices saw yet another steep fall on Thursday, with the precious metal declining Rs 700 to Rs 77,050 per 10 grams in the national capital amid subdued demand trend in the global markets, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity closed at Rs 77,750 per 10 grams in the previous session, a day after falling marginally by Rs 50 on Wednesday.
Silver also plummeted Rs 2,310 to Rs 90,190 per kg against the previous close of Rs 92,500 per kg.
Extending the losses for the fourth straight session, the price of gold of 99.5 per cent purity fell Rs 700 to Rs 76,650 per 10 grams. It had ended at Rs 77,350 per 10 grams on Wednesday.
In futures trade on the MCX, gold contracts for December delivery plunged Rs 804 or 1.08 per cent to trade at Rs 73,678 per 10 grams. During the day, the precious metal declined Rs 1,182 or 1.59 per cent to Rs 73,300 per 10 grams.
“Gold’s weakness persisted with price falling near Rs 73,500 in MCX as the dollar climbed. The US CPI data, which came in higher at 2.6 per cent compared to the expected 2.4 per cent, fuelled the dollar’s strength.
“While the Fed has been continuing with rate cuts as inflation approached its 2 per cent target, the CPI data raised concerns that further cuts may be paused,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
This development added pressure on gold prices, which reacted negatively to the stronger dollar and the potential shift in Fed policy, Trivedi added.
Silver contracts for December delivery plummeted Rs 2,067, or 2.32 per cent, to Rs 87,130 per kg.
Globally, Comex gold futures fell USD 29.10 per ounce, or 1.13 per cent, to hit a two-month low of USD 2,557.40 per ounce.
“Gold extended its fall during Thursday’s European session, hitting its lowest level since September 19.
“The US Dollar’s (USD) post-election rally persisted, reaching a fresh year-high which continues to put pressure on gold prices,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
The US Dollar buying remains unabated by traders in the wake of optimism over the expected expansionary policies by US President-elect Donald Trump. This, in turn, is seen as a key factor dragging the commodity lower for the fifth successive day, traders said.
Silver also declined 2.57 per cent to trade at USD 29.88 per ounce.
According to Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, traders will focus on the US Producer Price Index (PPI) and weekly jobless claims data due later on Thursday, along with retail sales data on Friday and remarks from Federal Reserve Chair Jerome Powell and other central bank officials. (PTI)
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