India News | Gold Retreats from Record Level Amid Weak Global Trend
Get latest articles and stories on India at LatestLY. Gold prices retreated from record high in the national capital on Tuesday, plunging Rs 400 to Rs 78,300 per 10 grams following fresh selling by stockists triggered by a bearish trend in the global markets.
New Delhi, Oct 8 (PTI) Gold prices retreated from record high in the national capital on Tuesday, plunging Rs 400 to Rs 78,300 per 10 grams following fresh selling by stockists triggered by a bearish trend in the global markets.
The precious metal had closed at an all-time level of Rs 78,700 per 10 grams on Monday, according to the All India Sarafa Association.
Silver, however, remained flat at Rs 94,000 per kg due to profit booking after the white metal traded lower in the overseas markets.
Additionally, gold of 99.5 per cent purity also pulled back from its record level and slumped Rs 400 to Rs 77,900 per 10 grams. It ended at Rs 78,300 per 10 grams in the previous close on Monday.
Traders attributed the fall in yellow metal prices due to lacklustre demand from local jewellers amid a weak trend in the global markets.
Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery slipped Rs 145, or 0.19 per cent, to trade at Rs 75,900 per 10 grams.
Silver contracts for December delivery plummeted Rs 1,280, or 1.39 per cent, to Rs 91,077 per kg on the MCX.
"Tensions in the Middle East between Iran and Israel are also keeping gold volatile, with a projected range between Rs 75,450-76,350 in the MCX.
"Market sentiment on interest rate cuts remains neutral, with expectations of a 0.25 per cent cut as the US unemployment numbers came in line, dulling hopes for a larger rate cut," Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said.
In the Asian trading hours, Comex gold futures fell 0.38 per cent to USD 2,655.80 per ounce.
"Gold traded with a modest decline on Tuesday, pressured by a higher US Treasury yield," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
According to Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers, Gold price witnessed limited upside amid a drop to one-week low was seen in spot.
Last week's upbeat US jobs report provided evidence of a still resilient labour market and forced investors to pare their bets for another 50 basis points interest rate cut by the Federal Reserve (Fed) in November, Sharma added.
Silver was quoting 1.79 per cent lower to USD 31.43 per ounce in the international markets.
"Gold is trading lower, weighed by sell-off in the entire commodities basket (especially industrial metals), after the Chinese government did not give any clues on implementation of any fresh stimulus, defying market expectations," Pranav Mer, VP - Research (Commodity & Currency) at BlinkX and JM Financial, said.
As per commodity experts, traders are further cautious before the release of the Federal Open Market Committee's (FOMC) meeting minutes.
Moreover, key inflation data -- including the US Consumer Price Index (CPI) and Producer Price Index (PPI) -- due to be released on Thursday and Friday, respectively, is likely to influence market sentiment and trajectory of gold prices, they said.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)