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Silver prices tumble to 3-week low at Rs 90,900; gold slips to Rs 78,700

The yellow metal of 99.5 per cent purity declined Rs 400 to Rs 78,300 per 10 grams on Thursday

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Silver dropped Rs 4,900 to trade at Rs 90,900 per kg, marking a steepest fall on poor offtake by jewellers. | Representative Photo

Press Trust of India New Delhi

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Silver prices tumbled to a three-week low by losing Rs 4,900 to Rs 90,900 per kg, while gold slipped Rs 100 to Rs 78,700 per 10 grams in the national capital on Thursday on frantic selling by stockists and retailers, according to the All India Sarafa Association.

The yellow metal of 99.5 per cent purity declined Rs 400 to Rs 78,300 per 10 grams on Thursday.

Price of gold of 99.9 per cent and 99.5 per cent purity closed higher at Rs 78,800 and Rs 78,700 per 10 grams, respectively, on Wednesday.

Silver also dropped Rs 4,900 to trade at Rs 90,900 per kg, marking a steepest fall on poor offtake by jewellers and coin makers.

 

Earlier, the white metal had slumped Rs 4,600 on November 4. On Wednesday, silver saw its steepest single-day jump of Rs 5,200 and regained the Rs 95,000 per kg level after a gap of two-weeks in the national capital.

Traders said the sentiment was downbeat largely in sync with a firm trend overseas amid uncertainty over the implications of US President-elect Donald Trump's tariff plans on economic prospects and the Federal Reserve's (Fed) interest rate outlook.

Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose Rs 167, or 0.22 per cent, to trade at Rs 75,927 per 10 grams on Thursday.

"Gold prices exhibited significant volatility, starting on a weaker note but quickly finding support amid renewed geopolitical tensions between Russia and Ukraine, which continue to bolster safe-haven buying.

"Dollar index movements and geopolitical updates will likely keep gold's momentum uncertain in the short term," Jateen Trivedi, VP Research Analyst -- Commodity and Currency at LKP Securities, said.

However, silver futures contracts for December delivery fell Rs 115, or 0.13 per cent, to Rs 87,565 per kg.

In the Asian market hours, Comex gold futures advanced USD 8.20 per ounce, or 0.31 per cent, to USD 2,673 per ounce.

"Gold prices continue to trade steady in a narrow range, amidst mixed data from the US, volatility in dollar index, increased trade tariff threat and fluctuations in market expectations regarding rate cuts," Manav Modi, Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said.

However, continuous updates regarding the ceasefire deal between Israel and Hezbollah and mixed comments from Fed officials are limiting gains and keeping market participants on the edge, Modi said.

Meanwhile, Comex silver futures slipped 0.15 per cent to USD 30.51 per ounce in the international markets.

"The yellow metal on Thursday is slightly up and is highly volatile on a firmer US dollar and geopolitical jitters emanating from the nuclear threat a a fallout of the ongoing Russia-Ukraine war," Praveen Singh -- Associate VP, Fundamental Currencies and Commodities at Mirae Asset Sharekhan, said.

According to Saumil Gandhi, Senior Analyst of Commodities, HDFC Securities, traders believe gold prices are likely to consolidate in range, and trading volume is expected to remain thin due to the Thanksgiving holiday in the US.

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First Published: Nov 28 2024 | 10:25 PM IST

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