NEW DELHI, Dec 31 : Gold prices slipped below Rs 79,000 per 10 grams in the national capital on Tuesday due to poor offtake by stockists and retailers, according to the local marketmen.
Gold declined during the last trading session of the year as participants were cautious, traders said.
The precious metal of 99.9 per cent purity declined Rs 550 to Rs 78,950 per 10 grams. It had closed at Rs 79,350 per 10 grams on Monday.
In the past one year, gold prices have surged Rs 15,030 or 23.5 per cent to Rs 78,950 per 10 grams.
“In 2024, domestic gold prices surged more than 20 per cent while spot gold rose around 26 per cent,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Gandhi highlighted the rally in gold prices is driven by multiple factors like global geopolitical and economic uncertainty, interest-rate cuts by Western central bankers, and strong demand from central banks and high-net-worth individuals.
Silver prices crashed by plummeting Rs 2,000 to Rs 89,700 per kg on Tuesday. The white metal finished at Rs 91,700 per kg in the previous trading session.
The price of 99.5 per cent purity depreciated Rs 550 to Rs 78,400 per 10 grams against the previous close of Rs 78,950 per 10 grams on Monday.
Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery increased Rs 253 or 0.33 per cent to trade at Rs 76,513 per 10 grams.
“Gold traded recovering slightly after the selling pressure observed on Monday. Prices rose to Rs 76,500 on MCX. The recent selling was primarily driven by a rising dollar index, which climbed back above the 108 mark, creating resistance for gold near Rs 77,000 in MCX.
“Additionally, thin trading volumes due to the holiday period and New Year celebrations have kept gold prices range-bound, with limited participation from market participants,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
Silver contracts for March delivery rose Rs 169 or 0.19 per cent to Rs 87,700 per kg on Tuesday in futures trade on the bourse.
Globally, Comex gold futures rose USD 4.8 per ounce or 0.18 per cent to USD 2,622.90 per ounce.
According to Abans Holdings’ Chief Executive Officer Chintan Mehta, gold prices hold steady as the dollar index remains strong, with traders tempering expectations for Federal Reserve rate cuts in 2025, following recent hawkish signals.
However, Comex silver futures dipped 0.16 per cent in the Asian market hours at USD 29.37 per ounce.
Markets will focus on US home price index data to be released later on Tuesday while monitoring unemployment claims and manufacturing PMI later this week, which will provide more cues on the trajectory of the bullion prices, Mehta said.
Although participation in gold has declined due to the holiday season, prices could strengthen as investors gradually increase their exposure. Traders expect gold prices to rise further, but any delay in additional interest rate cuts could lead to short-term declines, creating opportunities for accumulation, he added. (PTI)
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