Gold prices declined by Rs 600 to Rs 1,26,700 per 10 grams in the national capital on Thursday due to weak global trends and a firm US dollar, according to marketmen.
The precious metal of 99.5% purity decreased by Rs 600 to Rs 1,26,100 per 10 grams (inclusive of all taxes).
Silver prices slumped by Rs 2,000 to Rs 1,58,000 per kilogram (inclusive of all taxes).
‘Gold prices declined on Thursday, impacted by a stronger US dollar and diminished safe-haven demand following reports of renewed US efforts to end the war in Ukraine,’ Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
Gandhi noted that market sentiment further deteriorated after the US Bureau of Labor Statistics announced it would not publish the October jobs report, leaving the Fed without crucial labour data ahead of its final meeting of the year.
‘This development increased the possibility for the Fed to maintain the status quo in the December meeting, a perspective reinforced by the minutes from the October meeting, which indicated that many officials support keeping interest rates steady through 2025,’ he said.
In the international markets, spot gold slipped by $16.48, or 0.4%, to $4,061.53 per ounce.
‘Spot gold is trading with a loss at $4,060 level amid mild US Dollar strength,’ Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.03%, at 100.26.
Spot silver was trading 1.22% lower at $50.73 per ounce in the overseas trade.
‘Gold and silver prices are consolidating, and market players are keeping their attention on impending economic data in search of additional hints regarding the direction of US interest rates,’ Renisha Chainani, Head – Research at Augmont, said.
The minutes from the October 28–29 Federal Open Market Committee (FOMC) meeting revealed that a divided Fed lowered interest rates last month despite warnings from officials that lower borrowing costs could jeopardise the effort to control inflation.
‘On the macro front, traders are now awaiting the release of the US Nonfarm Payrolls report for September due later in the day, which could provide insights on the Federal Reserve’s (Fed) monetary policy outlook,’ Gandhi said.
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