NEW DELHI — Gold prices slumped for the second straight session by INR 1,150 to
INR 78,350 per 10 grams in the national capital on Monday on frantic selling by
stockists and retailers, the All India Sarafa Association said.
The precious metal of 99.9 per cent purity closed at INR
79,500 per 10 grams on Friday.
Silver also declined INR 300 to INR 92,500 per kg.
The white metal finished at INR 92,800 per kg in the
previous trading session. In the last two trading sessions, it had plummeted INR
4,500 per kg.
The price of gold of 99.5 per cent purity slipped INR 1,150
to INR 77,950 per 10 grams on Monday.
Traders said the sentiment was downbeat largely with
uncertainty over the implications of concerns about US President-elect Donald
Trump's economic policies that could act as a tailwind for the US dollar.
In futures trade on the MCX, gold contracts for February
delivery rose INR 143, or 0.19 per cent, to trade at INR 77,279 per 10 grams.
During the day, the yellow metal hit an intra-day low of INR
76,904 per 10 grams and a high of INR 77,295 per 10 grams, respectively.
"Gold traded within a volatile range, continuing last
week's up-and-down swings as markets brace for a series of major economic
events this week," Jateen Trivedi, VP Research Analyst - Commodity and
Currency at LKP Securities, said.
Silver contracts for March delivery climbed INR 319, or 0.35
per cent, to INR 91,320 per kg on the commodities exchange.
Comex gold futures rose USD 2.70 per ounce, or 0.10 per
cent, to USD 2,678.50 per ounce in the international markets.
"Safe haven demand continues to provide support for
gold and limit downside due to ongoing geopolitical tensions in the Middle
East, particularly after Israel carried out air and ground attacks in
Gaza," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities,
said.
Flash PMIs from the United States and the Eurozone to be released
later on Monday might influence overall risk sentiment and offer volatility for
bullion, Gandhi said.
Echoing similar sentiments, Pranav Mer, Vice President, EBG,
Commodity & Currency Research, JM Financial Services, said, "Gold
prices are likely to trade steady and may see some consolidation as focus turns
on the key central bank policy meeting outcome starting with Fed on Wednesday,
followed by Bank of Japan/ Bank of England on Thursday and People's Bank of
China (PBoC) on Friday.
Silver in the Asian trading session traded 0.26 per cent at
USD 31.11 per ounce.
According to the World Gold Council, the precious metal
prices are set to rise more slowly in 2025 after a record-breaking run this
year. However, the gains next year will likely be tempered by variables like
growth and inflation.
Possible trade-wars in US President-elect Trump's second
term and complicated interest-rate outlooks may spill over into sub-par
economic growth, hurting demand from investors and consumers, WGC said in its
2025 outlook report.
