price of gold and silver
– Photo: PTI
Expansion
According to All India Bullion Association, gold and silver prices continued to fall for the second consecutive day on Tuesday in the national capital due to sluggish demand from jewelers and weak global cues. Gold of 99.9 percent purity fell by Rs 1,750 to Rs 77,800 per 10 grams. Went. In the last trading session it had closed at Rs 79,550 per 10 grams. Silver also fell by Rs 2,700 to Rs 91,300 per kg, whereas last time its price had closed at Rs 94,000 per kg.
The price of gold of 99.5 percent purity fell by Rs 1,750 to Rs 77,400 per 10 grams. On Monday, this yellow metal closed at Rs 79,150 per 10 grams. Meanwhile, the price of gold contract for December delivery fell by Rs 612, or 0.81 per cent, to Rs 74,739 per 10 grams in futures trade on Multi Commodity Exchange (MCX).
Pressure on gold due to dollar strength
Gold prices continued to remain under pressure on Comex due to the strengthening of the dollar index, keeping prices below $2,600. In MCX, gold fell below Rs 75,000 for the first time since October 10. Jatin Trivedi, Research Analyst, Vice President, Commodity and Currency, LKP Securities, said, “The current downtrend indicates that further weakness may continue if COMEX gold remains below $2,600 and can test the $2,500 level in the coming sessions. If it touches Rs 72,000, the price can potentially fall to Rs 72,000.
On MCX, the price of December delivery silver fell by Rs 742, or 0.83 percent, to Rs 88,440 per kg. In overseas markets, gold futures on Comex fell by $ 19.90 an ounce, or 0.76 percent, to $ 2,597.80 an ounce.
Gold softens after Trump's victory in US presidential election
“Gold continued to fall on Tuesday as economic optimism boosted by Donald Trump's victory in the presidential election helped the dollar gain,” said Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities. Meanwhile, Gandhi said Trump's victory increases the chances of a ceasefire in Ukraine and the Middle East, which will reduce demand for gold as a safe-haven investment.
He said market participants are now awaiting US inflation data, including consumer price index (CPI), to be released on Wednesday and comments from several Federal Reserve members. In the Asian market, Comex silver futures were down 0.6 per cent at $30.43 per kg. Was trading on the ounce.
Dollar at four-month high
According to Chintan Mehta, CEO, Abans Holdings, gold prices remain weak as the dollar index hit a 4-month high. The US Federal Reserve (Fed) is likely to cut interest rates by only 25 basis points in December.
Additionally, Trump's proposed policies, including higher tariffs and stricter immigration controls, are expected to increase inflation, according to Mehta. This will reduce expectations of a significant interest rate cut by the Fed. In this way, the attractiveness of gold will reduce.
