NEW DELHI: Gold prices fell by Rs 450 to Rs 79,550 per 10 grammes in the national capital on Monday, owing to sluggish global market trends, according to the All India Sarafa Association.
On Friday, the yellow gold had settled at Rs 80,000 per 10 grammes. Silver also fell Rs 600 to Rs 94,000 per kg on Monday, compared to the previous closing of Rs 94,600.
The price of gold with 99.5% purity declined Rs 450 to Rs 79,150 per 10 grammes. The precious metal finished at Rs 79,600 per 10 grammes on Friday. Meanwhile, gold futures for December delivery on the Multi Commodity Exchange (MCX) fell Rs 460, or 0.6%, to Rs 76,812 per 10 grammes.Gold prices are trading lower on the Comex, down from Friday’s finish of USD 2,685, as the strong dollar index puts pressure on the yellow metal.
“The rise in US bond prices following Trump’s election victory is contributing to the corrective trend in bullion,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, stated. Silver contracts for December delivery gained Rs 63, or 0.07%, to Rs 91,332 per kg on the exchange. Globally, Comex gold futures fell USD 17.80 per ounce, or 0.66 percent, to $2,677 per ounce.Comex gold prices fell to a one-month low of USD 2,650.30 per ounce last week, as investor sentiment shifted towards risk assets following Trump’s election victory and the Republican Party’s successful bid to retake control of the US Senate, according to Kaynat Chainwala, AVP-Commodity Research at Kotak Securities.
Gold momentarily rose above USD 2,700 on the Fed’s widely anticipated 25 basis point rate drop. However, a stronger dollar and rising Treasury yields kept gold under pressure, and it concluded the week down 2% to USD 2,694.80 per ounce. Chainwala added:According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, gold resumed trading at a lower level due to a number of bearish factors, including the strength of the US dollar, wagers on less aggressive Federal Reserve interest rate cuts, and elevated US bond yields.
However, Comex silver futures rose 0.23 percent to USD 31.52 per ounce during Asian trading hours. According to commodity analysts, US President-elect Donald Trump announced a 10% tariff on all US imports last week, which is predicted to spark a comeback in inflation and limit the US Federal Reserve’s (Fed) ability to ease significantly in the near future.
This, in turn, continues to maintain rising US Treasury bond yields and adds to drive flows away from the yellow metal, they said.
