New Delhi, Nov 13 Gold prices extended their losing streak for the fourth straight session, tumbling Rs 2,500 to Rs 1.40 lakh per 10 grams in the national capital on Friday, as subdued post-Diwali demand and weak global trends weighed on the precious metal.
The 99.9 per cent pure yellow metal declined Rs 2,500 to Rs 1,40,900 per 10 grams (inclusive of all taxes) from Thursday’s close of Rs 1,43,400 per 10 grams, according to the All India Sarafa Association.
Silver also resumed its decline after remaining unchanged in the preceding session. The white metal shed Rs 3,500 to Rs 1,84,000 per kg (inclusive of all taxes) from the previous close of Rs 1,87,500 per kg.
“Domestic gold prices remained under pressure on Friday, tracking weak global cues and subdued retail demand following the Diwali festive season,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
According to Vikram Subburaj, CEO at Giottus.com, silver is also facing a sharp correction, with rising US Treasury yields and a stronger dollar weighing on precious metals.
The sharper decline in the metal highlighted its greater sensitivity to changes in risk appetite and industrial demand expectations, Subburaj said.
In global markets, spot gold recovered USD 27.21, or 1 per cent, to USD 3,904.87 per ounce after plunging 3 per cent in the previous session to settle at USD 3,877.52, slipping below the USD psychological level of USD 4,000 mark.
Silver, however, remained flat at USD 50.04 per ounce.
Gandhi said gold hovered around USD 3,900 per ounce after touching a fresh 52-week low on Thursday. The selloff intensified after President Donald Trump’s remarks that Washington did not need a peace agreement with Tehran dampened expectations of an immediate diplomatic breakthrough.
Investors are awaiting the US Producer Price Index (PPI) and core PPI data for cues on inflation trends and the Federal Reserve’s monetary policy outlook. Speeches by Fed officials will also be monitored for signals on the December policy decision, he added.
On the outlook, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said volatility is likely to remain elevated amid movements in the dollar.
Ongoing tensions in West Asia have also kept crude oil prices supported, adding to inflationary concerns and strengthening expectations of tighter monetary conditions by the US central bank, he added.
(PTI News)
