New Delhi, Nov 14: Gold prices plunged by Rs 1,500 to Rs 1,29,400 per 10 grams in the national capital on Friday tracking weak global trends after comments from Federal Reserve officials indicated that the absence of fresh economic data could delay further rate cuts.
The precious metal of 99.5 per cent purity declined by Rs 1,500 to Rs 1,28,800 per 10 grams (inclusive of all taxes) from Thursday’s closing of Rs 1,30,300 per 10 grams, according to the All India Sarafa Association.
In the local bullion market, gold of 99.9 per cent purity had finished at Rs 1,30,900 per 10 grams in the previous market session.
“Gold softened at the end of the week as uncertainty regarding the Federal Reserve’s next rate cut increased,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities said.
He noted that more Fed officials have turned cautious due to a lack of fresh economic data as government agencies remain affected by shutdown related delay since October 1.
Silver prices also tumbled by Rs 4,200 to Rs 1,64,800 per kilogram (inclusive of all taxes) on Friday. The white metal had closed at Rs 1,69,000 per kg on Thursday.
In the overseas market, spot gold fell by USD 33.58, or nearly 1 per cent to USD 4,137.88 an ounce while spot silver was trading 0.49 per cent lower at USD 52.03 per ounce.
“Gold prices stayed weak, as comments from Federal Reserve members suggesting that the lack of fresh economic data could delay further rate cuts dampened sentiment in bullion. The dollar index strengthened, adding additional pressure on gold,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said. (PTI)
