New Delhi, July 28: Gold prices slid for the fourth consecutive session and ended Rs 500 lower at Rs 98,020 per 10 grams in the national capital on Monday due to unabated selling by stockists following a trade deal between the US and the EU, which dampened the safe-haven demand.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity ended at Rs 98,520 per 10 grams, down by Rs 600 on Saturday.
In the national capital, gold of 99.5 per cent purity extended its losing run for the fourth straight day, by declining Rs 500 to Rs 97,750 per 10 grams (inclusive of all taxes) on Monday. It had finished at Rs 98,250 per 10 grams in the previous market session.
In addition, silver prices depreciated Rs 1,000 to Rs 1,13,000 per kilogram (inclusive of all taxes) on Monday. The white metal had closed at Rs 1,14,000 per kg on Saturday.
Meanwhile, spot gold and silver traded flat at USD 3,337.95 and USD 38.17 per ounce, respectively, in the global markets.
“Gold traded in a positive but flat range near USD 3,335 per ounce, as strength in the dollar index limited gains last week,” Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said.
The US has announced a trade deal with the European Union (EU), which includes a 15 per cent tariff on most European goods entering the American market alongside the 27-nation block’s commitment to invest hundreds of billions of dollars in American industry. This agreement mirrors last week’s US-Japan trade pact.
“Investors will closely track upcoming US macroeconomic data, including jobless claims and Q2 GDP figures during the week,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said.
According to Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, the price of gold remains stagnant, as bulls remain cautious amid trade optimism and a stronger US dollar.
Gandhi further said that bullion prices declined last week due to a drop in demand for safe haven assets amid an easing in tariff concerns. Additionally, President Donald Trump alleviated market worries about the US Federal Reserve’s independence by downplaying tensions with Fed Chair Jerome Powell.
“Both factors contributed to the rise in the US dollar, which has risen for the third consecutive day and is negatively impacting precious metal prices,” he added
