NEW DELHI — Silver prices tumbled to a three-week low by losing INR 4,900 to INR
90,900 per kg, while gold slipped INR 100 to INR 78,700 per 10 grams in the
national capital on Thursday on frantic selling by stockists and retailers,
according to the All India Sarafa Association.
The yellow metal of 99.5 per cent purity declined INR 400
to INR 78,300 per 10 grams on Thursday.
Price of gold of 99.9 per cent and 99.5 per cent purity
closed higher at INR 78,800 and INR 78,700 per 10 grams, respectively, on
Wednesday.
Silver also dropped INR 4,900 to trade at INR 90,900 per
kg, marking a steepest fall on poor offtake by jewellers and coin makers.
Earlier, the white metal had slumped INR 4,600 on
November 4. On Wednesday, silver saw its steepest single-day jump of INR 5,200
and regained the INR 95,000 per kg level after a gap of two-weeks in the
national capital.
Traders said the sentiment was downbeat largely in sync
with a firm trend overseas amid uncertainty over the implications of US
President-elect Donald Trump's tariff plans on economic prospects and the
Federal Reserve's (Fed) interest rate outlook.
Meanwhile, in futures trade on the Multi Commodity
Exchange (MCX), gold contracts for December delivery rose INR 167, or 0.22 per
cent, to trade at INR 75,927 per 10 grams on Thursday.
"Gold prices exhibited significant volatility,
starting on a weaker note but quickly finding support amid renewed geopolitical
tensions between Russia and Ukraine, which continue to bolster safe-haven
buying.
"Dollar index movements and geopolitical updates
will likely keep gold's momentum uncertain in the short term," Jateen
Trivedi, VP Research Analyst -- Commodity and Currency at LKP Securities, said.
However, silver futures contracts for December delivery
fell INR 115, or 0.13 per cent, to INR 87,565 per kg.
In the Asian market hours, Comex gold futures advanced
USD 8.20 per ounce, or 0.31 per cent, to USD 2,673 per ounce.
"Gold prices continue to trade steady in a narrow
range, amidst mixed data from the US, volatility in dollar index, increased
trade tariff threat and fluctuations in market expectations regarding rate
cuts," Manav Modi, Analyst, Commodity Research at Motilal Oswal Financial
Services Ltd, said.
However, continuous updates regarding the ceasefire deal
between Israel and Hezbollah and mixed comments from Fed officials are limiting
gains and keeping market participants on the edge, Modi said.
Meanwhile, Comex silver futures slipped 0.15 per cent to
USD 30.51 per ounce in the international markets.
"The yellow metal on Thursday is slightly up and is
highly volatile on a firmer US dollar and geopolitical jitters emanating from
the nuclear threat a a fallout of the ongoing Russia-Ukraine war," Praveen
Singh -- Associate VP, Fundamental Currencies and Commodities at Mirae Asset
Sharekhan, said.
According to Saumil Gandhi, Senior Analyst of
Commodities, HDFC Securities, traders believe gold prices are likely to
consolidate in range, and trading volume is expected to remain thin due to the
Thanksgiving holiday in the US.
