There was a big fall in the prices of gold and silver in the national capital. Gold fell by Rs 1,650 and fell below Rs 80,000 level. Silver also became cheaper by Rs 2,900 per kg. According to All India Bullion Association, the price of gold today fell by Rs 1,650 to Rs 79,500 per 10 grams. Last day its price had closed at Rs 81,150 per 10 grams. According to PTI news, silver also fell by Rs 2,900 to Rs 93,800 per kg. On Wednesday, its price remained stable at Rs 96,700 per kg.
Prices fell due to these reasons
According to the news, traders said that the main reason for the fall in prices was sluggish demand from local jewelers amid weak trend overseas. Silver prices also fell due to weak offtake by industrial units and coin makers. According to All India Bullion Association, the price of gold of 99.5 percent purity also fell by Rs 1,650 to Rs 79,100 per 10 grams. In the previous session, it had closed at Rs 80,750 per 10 grams.
How was the futures market?
Gold contracts for December delivery were trading steady at Rs 76,655 per 10 grams in futures trade on the Multi Commodity Exchange (MCX). However, silver contracts for December delivery were trading down Rs 9, or 0.01 per cent, at Rs 90,811 per kg. Comex gold futures fell $1.90 an ounce, or 0.07 percent, to $2,674.40 an ounce in the Asian market. In global markets, silver fell 0.24 per cent to $31.26 an ounce.
What do experts say
Jatin Trivedi, Vice President Research Analyst (Commodity & Currency), LKP Securities, said gold traded in a steady to tight range as market participants awaited the outcome of the Federal Reserve (Fed) meeting tonight, in which 0.25 Percentage reduction in interest rate is expected. Meanwhile, Saumil Gandhi, senior analyst of commodities at HDFC Securities, says that gold prices fell due to reduced safe-haven inflows amid Trump’s trade enthusiasm and shift of capital flows towards risky assets like Bitcoin and equity markets.
On the market outlook for gold, traders said the future movement of the precious metal will depend on the Fed’s commentary and subsequent rate decisions. Although rates are expected to decline, the pace and extent of these cuts will be key to the appeal of the yellow metal.
