Gold retreats from record high amid weak global trend, silver holds steady

Gold prices retreated from a record level in the national capital on Tuesday, falling from Rs 400 to Rs 78,300 per 10 gram following fresh selling by stockists triggered by a bearish trend in the global markets. The precious metal closed at a record high of Rs 78,700 per 10 grams on Monday, according to the All India Sarafa Association.

Silver, however, remained stable at Rs 94,000 per kg due to profit booking after the white metal traded lower in overseas markets.

Furthermore, gold with 99.5 per cent purity also retreated from its record level and fell from Rs 400 to Rs 77,900 per 10 grams. It ended at Rs 78,300 per 10 grams at the previous close on Monday.

Traders attributed the fall in prices of the yellow metal to weak demand from local jewelers amid a weak trend in global markets.

Meanwhile, in futures trading on the Multi Commodity Exchange (MCX), gold contracts for December delivery fell by Rs 145, or 0.19 per cent, to trade at Rs 75,900 per 10 grams.

Silver contracts for December delivery plunged Rs 1,280, or 1.39 percent, to Rs 91,077 per kg on the MCX. “Middle East tensions between Iran and Israel are also keeping gold volatile, with a projected range between Rs 75,450 and Rs 76,350 on the MCX. “Market sentiment on interest rate cuts remains neutral, with expectations of a 0.25 percent cut as U.S. unemployment numbers converged, dashing hopes of a bigger rate cut,” said Jateen Trivedi, vice president of research, commodities and currencies analyst at LKP Securities. .

During Asian trading hours, Comex gold futures fell 0.38 percent to $2,655.80 an ounce.

“Gold traded modestly lower on Tuesday, pressured by higher US Treasury Yield“said Saumil Gandhi, senior commodities analyst at HDFC Securities.

According to Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers, gold price saw a limited rise amid a decline to a one-week low seen there.

Last week’s upbeat U.S. jobs report provided evidence of a still resilient labor market and forced investors to reduce their bets on another 50 basis point interest rate cut by the Federal Reserve (Fed) in November. Sharma added.

Silver was trading 1.79 percent lower in international markets, up to $31.43 per ounce.

“Gold is trading lower, affected by massive sales across the basket of raw materials (especially industrial metals), after the Chinese government has not given any hint on the implementation of new stimuli, defying market expectations” Pranav Mer, vice president of research (Commodity & Currency) at BlinkX and JM Financial, said.

According to commodity experts, traders are even more cautious ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes.

Additionally, key inflation data, including the US Consumer Price Index (CPI) and Producer Price Index (PPI), due to be released on Thursday and Friday, respectively, are likely to influence sentiment. market and the trajectory of gold prices, they said. .