New Delhi, July 24: Gold prices dived Rs 1,400 to Rs 99,620 per 10 grams in the national capital on Thursday due to profit-booking by stockists and a subdued trend in the global markets, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity had closed at Rs 1,01,020 per 10 grams on Wednesday.
In the national capital, gold of 99.5 per cent purity fell Rs 1,200 to Rs 99,250 per 10 grams (inclusive of all taxes) on Thursday. It had settled at Rs 1,00,450 per 10 grams in the previous market session.
“Gold prices are down on profit-booking, as the risk premium eased after US announced trade agreements with Japan and the Philippines — raising expectations more such deals, especially with China and Europe.
“However, prices may see some support from a weaker dollar against major currencies,” Pranav Mer, Vice President, EBG, Commodity & Currency Research, JM Financial Services, said.
As per the association, silver prices plunged Rs 3,000 to Rs 1,15,000 per kilogram (inclusive of all taxes) on Thursday. It had rallied Rs 4,000 to hit a lifetime high of Rs 1,18,000 per kg on Wednesday.
Meanwhile, spot gold fell USD 24.35, or 0.72 per cent, to USD 3,362.88 per ounce in the international markets.
“Gold retreated from a five-week high and continued to decline on Thursday as optimism regarding the trade deal between the US and its major trading partners reduced the demand for safe-haven assets,” Saumil Gandhi, Senior Analyst, Commodities, at HDFC Securities, said.
Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities, said, “Over the past month, gold had sustained gains amid stalled tariff negotiations, but fresh deal announcements have triggered expectations of easing tensions, reducing bullion’s appeal in the short term.”
On the global front, spot silver went lower by 0.53 per cent to trade at USD 39.05 per ounce.
“Going ahead the US weekly jobless claims numbers and S&P Global flash PMI data will be in focus on Thursday to gauge economic health ahead of the Federal Reserve’s monetary policy decision next week.
“Traders could also remain on alert with European Central Bank’s interest rate decision later in the day which could create volatility in global currency pairs,” Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said
