Gold prices fell by ₹80 to ₹80,580 per 10 gram, ending the five-day winning streak in the national capital on Tuesday amid a weak global trend, the All India Sarafa Association said.
On Monday, the precious metal closed at ₹80,660 per 10 grams.
Silver also fell sharply by ₹1,300 to ₹91,700 per kg on Tuesday on weak demand from industrial units and coin makers. The white metal settled at ₹93,000 per kg in the previous session.
The price of gold with 99.5 percent purity fell by ₹80 to ₹80,180 per 10 gram from the previous closing price of ₹Rs 80,260 per 10 gram.
Moreover, gold contracts for February delivery fell by ₹16 to ₹78,150 per 10 gram in futures trade on the Multi Commodity Exchange (MCX).
“Gold traded within a tight range as MCX Gold fluctuated between ₹78,150 and 78,400. Comex Gold, on the other hand, showed slight weakness and hovered around $2,665,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
Silver contracts for March delivery also fell by ₹128, or 0.14 per cent, to ₹90,385 per kg on the MCX.
Meanwhile, Comex gold futures rose marginally to USD 2,679.50 per ounce in overseas markets.
“Gold prices fell on Tuesday, pressured by a rise in US bond yields and the US dollar. The Federal Reserve (Fed) may cut rates less this year as last week’s strong jobs report supported a rally in US Treasury yields and the US dollar,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
US 10-year Treasury yields, which underpin global borrowing costs, hit a 14-month high on Monday.
“In addition to this risk to sentiment, the flow from safe havens to riskier assets shifted after news emerged that members of Donald Trump’s economic team were discussing a gradual approach to raising rates to avoid a spike in inflation,” Gandhi said .
However, silver traded flat at $30.32 per ounce during Asian market hours.
According to Abans Holdings CEO Chintan Mehta, markets are now awaiting the release of the US Core Producer Price Index data on Tuesday, followed by the Consumer Price Index (CPI) on Wednesday.
Furthermore, investors are also keeping a close eye on upcoming speeches from Federal Open Market Committee (FOMC) members later this week for further insights into the Fed’s policy direction, Mehta said.
