NEW DELHI, May 24: Gold prices saw yet another steep fall on Friday and settled Rs 900 lower at Rs 72,650 per 10 grams in the national capital amid subdued trend in the global markets.
The precious metal had plunged Rs 1,050 to close at Rs 73,550 per 10 grams in the previous session on Thursday, a day after falling marginally by Rs 50 on Wednesday.
Extending its decline for the third day in a row, the yellow metal declined after stronger-than-expected US macroeconomic data, which reinforced bets that the US Federal Reserve would keep interest rates higher for a longer period, according to HDFC Securities.
Meanwhile, silver also plunged Rs 500 to Rs 92,100 per kg. It had settled at Rs 92,600 per kg in the previous session.
“Spot gold prices in the Delhi markets are trading at Rs 72,650 per 10 grams, down by Rs 900, taking bearish cues from the overseas markets,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the global markets, spot gold at Comex was trading at USD 2,340 per ounce, down USD 35 from the previous close.
“The S&P Global flash May composite purchasing managers index (PMI) hit its highest point since April 2022, surpassing all estimates.
“Following the data release, US Treasury yields, and the dollar index moved higher, which weighed on yellow metal prices,” Gandhi said.
Silver was also quoting lower at USD 30.45 per ounce.
“Gold has traded weak this week, experiencing a significant sell-off of more than Rs 2,800 from weekly highs. This decline is primarily due to the reduced likelihood of the US Fed cutting rates early, as indicated by the recent meeting minutes.
“Despite this pullback, the overall rally in gold remains strong, and this week’s decline should be viewed as a buying opportunity,” Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said.
According to market experts, the yellow metal was also hit by waning safe-haven demand amid easing geopolitical tension in the Middle East. (PTI)
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