Gold prices retreated from record highs in the national capital on Tuesday, declining by Rs 50 to Rs 78,650 per 10 grams following fresh selling by stockists and retailers, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity rose by Rs 200 to revisit the all-time high level of Rs 78,700 per 10 grams on Monday. Silver prices plunged Rs 1,000 to Rs 92,500 per kg against the previous close of Rs 93,500 per kg. In addition, gold of 99.5 per cent purity decreased Rs 50 to Rs 78,250 per 10 grams. On Monday, it had finished at Rs 78,300 per 10 grams to reclaim its record high. Traders attributed the fall in yellow metal prices to lacklustre demand from local jewellers.
In the futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose Rs 54, or 0.07 per cent, to Rs 76,100 per 10 grams.
However, silver contracts for December delivery slipped Rs 101, or 0.11 per cent, to Rs 90,635 per kg on the MCX. “Gold prices traded with volatility but gained upward momentum after touching lower levels of USD 2,640 in Comex. Early selling pressure was seen due to the positive opening of the dollar index.
However, as the dollar softened, gold found support and rose from USD 2,640 to USD 2,655,” Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said.
Globally, Comex gold rose 0.16 per cent to USD 2,669.90 per ounce. “Gold prices steadied as traders awaited more cues on US interest rates from a string of US Federal Reserve speakers this week, while bets on a November cut persisted,” Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said.
Persistent concerns over the Middle East conflict also kept safe-haven demand in play. Along with this, the sharp rise in the dollar index and US yields is also weighing on prices, Modi added. Focus this week will be on US retail sales, IIP, and China GDP data that will give directions for bullion prices, he said. Silver went up 0.08 per cent to USD 31.34 per ounce in the overseas markets.
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