Gold falls to ₹1,25,600 per 10 grams in Delhi amid weak global cues

The precious metal of 99.9 per cent purity had closed at ₹1,32,400 per 10 grams on October 18

Gold prices tanked to Rs 1,25,600 per 10 grams in the national capital on Friday amid weak trends in the international markets, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had closed at Rs 1,32,400 per 10 grams on October 18.

Gold of 99.5 per cent purity slumped to Rs 1,25,000 per 10 grams (inclusive of all taxes). It had settled at Rs 1,31,800 per 10 grams on Saturday.

In the local bullion market, silver prices also tumbled to Rs 1,52,600 per kilogram (inclusive of all taxes) on Friday. It had ended at Rs 1,70,000 per kg in the previous market session.

 

The association said that local bullion markets reopened on Friday after being closed for four days amid Diwali festivities.

In the international markets, spot gold fell by $ 38.47, or 0.93 per cent, to $ 4,087.55 per ounce on Friday after rising 0.67 per cent in the previous session.

"Gold struggled to maintain its recovery on Friday as the market shifted from a bullish trend to the correction phase. Traders remain cautious following a sharp sell-off earlier in the week and avoid fresh buying," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

Gandhi noted that many markets in India are closed for the holiday season, and following the conclusion of the Diwali festival, the demand in India, the world's second-largest gold consumer, is expected to decline.

Spot silver declined by $ 1.66 per cent to $ 48.12 per ounce in the overseas markets.

"Easing geopolitical tensions, as US President Donald Trump and Chinese counterpart Xi Jinping's meeting is scheduled on October 30, also weighs on the metal.

"Meanwhile, the Trump administration's decision to impose sanctions on the biggest Russian oil companies has underscored the fact that geopolitical concerns are going to linger for a long time," Praveen Singh, Head of Commodities and Currencies at Mirae Asset Share Khan, said.

Gold is likely to trade between $ 4,000-4200 per ounce level in the near term, as the interest rate cut expectations by the US Federal Reserve limit the downside, Singh added.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "The ongoing US government shutdown and uncertainty around trade negotiations are expected to keep sentiment cautious".