Gold prices extended their losing streak for the fourth consecutive session, tumbling Rs 2,500 to Rs 1,40,900 per 10 grams in the national capital on Friday, as subdued post-Diwali demand and weak global trends weighed on the precious metal.
According to the All India Sarafa Association, gold of 99.9 per cent purity declined from Thursday's closing level of Rs 1,43,400 per 10 grams. The prices are inclusive of all taxes.
Silver also resumed its downward trend after remaining unchanged in the previous session. The white metal fell Rs 3,500 to Rs 1,84,000 per kg from its previous close of Rs 1,87,500 per kg, inclusive of all taxes.
๐ช๐ฒ๐ฎ๐ธ ๐ฑ๐ฒ๐บ๐ฎ๐ป๐ฑ ๐ต๐ถ๐๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ๐
"Domestic gold prices remained under pressure on Friday, tracking weak global cues and subdued retail demand following the Diwali festive season," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Market analysts attributed the continued decline to reduced domestic buying interest and pressure from international markets.
Vikram Subburaj, CEO of Giottus.com, said silver was also undergoing a sharp correction as rising US Treasury yields and a stronger dollar weighed on precious metals.
He noted that silver's steeper decline reflected its greater sensitivity to shifts in investor risk appetite and expectations surrounding industrial demand.
๐๐ผ๐น๐ฑ ๐ฟ๐ฒ๐ฐ๐ผ๐๐ฒ๐ฟ๐ ๐ด๐น๐ผ๐ฏ๐ฎ๐น๐น๐
In international markets, spot gold recovered $27.21, or 1 per cent, to $3,904.87 per ounce after plunging 3 per cent in the previous session to settle at $3,877.52.
The earlier decline had pushed the precious metal below the psychologically important $4,000-per-ounce level.
Silver, meanwhile, remained largely unchanged at $50.04 per ounce in global markets.
Gandhi said gold hovered around $3,900 per ounce after touching a fresh 52-week low on Thursday.
The selloff intensified after US President Donald Trump's remarks that Washington did not need a peace agreement with Tehran dampened expectations of an immediate diplomatic breakthrough.
๐๐๐ฒ๐ ๐ผ๐ป ๐จ๐ฆ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ฑ๐ฎ๐๐ฎ
Investors are now awaiting the US Producer Price Index (PPI) and core PPI figures for further indications of inflation trends and the Federal Reserve's monetary policy outlook.
Gandhi said speeches by Federal Reserve officials would also be closely monitored for signals regarding the central bank's December policy decision.
Jateen Trivedi, Vice-President and Research Analyst for Commodity and Currency at LKP Securities, said volatility in precious metal prices was likely to remain elevated amid fluctuations in the US dollar.
He added that ongoing tensions in West Asia had kept crude oil prices supported, contributing to inflationary concerns and strengthening expectations of tighter monetary conditions by the US central bank.