A day before the Dhanteras festival, gold prices in the country fell by Rs 400 to Rs 81,100 per 10 gram in the national capital on Monday amid weak trends in overseas markets, according to the All India Sarafa Association. The precious metal, 99.9 per cent and 99.5 per cent pure, had once again reached its all-time level of Rs 81,500 and Rs 81,100 per 10 grams, respectively, on Saturday.
However, silver remained stable at Rs 99,500 per kg.
Meanwhile, gold with 99.5 per cent purity declined by Rs 400 to Rs 80,700 per 10 gram on Monday.
Declining demand from jewelers and stockists in local markets amid sluggish trend in global markets led to a fall in gold prices, traders said. Meanwhile, in futures trading on the Multi Commodity Exchange (MCX), gold contracts for December delivery declined by Rs 312, or 0.4 per cent, to Rs 78,220 per 10 gram.
“Gold prices saw a decline at the start of the week and were weakened by Comex, as profit bookings emerged amid signs of de-escalation in the Israel-Iran conflict,” Jateen Trivedi, vice president of research and analyst of commodities and currencies of LKP Securities. , saying.
Silver contracts for December delivery plunged by Rs 585, or 0.6 percent, to Rs 96,549 per kg on the exchange. According to Motilal Oswal Financial Services Ltd, silver will outperform gold in the medium to long term. Silver will hit the target of Rs 1.25 lakh per kg on the MCX and $40 per ounce on Comex in the next 12-15 months.
Globally, Comex gold futures declined 0.38 percent to $2,744 per ounce.
Gold edges fell on Monday amid reports of a drop in demand from the world’s biggest gold consumer, China, in the first three quarters of 2024, compared with the same period a year ago, traders said. “Gold prices resumed trading on a weaker note on Monday due to lower safe-haven demand,” Saumil Gandhi, senior commodities analyst at HDFC Values, he said.
Investors found relief in the attack on Iran, which was less severe than expected as Israel refrained from attacking Iran’s nuclear and oil facilities, Gandhi said. Comex silver futures traded 0.63 percent lower at $33.57 an ounce during Asian market hours.
“Comex gold prices hit a record high of $2,772.60 per ounce last week in a tight race between Vice President Kamala Harris and the former president. donald trump fueled demand for safe haven. “However, prices retreated as strong US economic data raised expectations that the US Federal Reserve would take a cautious approach to monetary easing,” said Kaynat Chainwala, deputy vice president at Kotak Securities Commodity Research.
Concerns about US growth Budget The deficit and a pullback in US Treasury yields – their highest level since late July – helped gold prices recover, Chainwala said.
According to Pranav Mer, Vice President of EBG – Commodities and Currencies Research at JM Financial Services, market participants will closely watch macroeconomic data from major economies, including US consumer confidence. GDP and inflation data from Germany, the eurozone and the United States throughout the week. In addition, US payroll data and manufacturing PMI from all regions will also provide more information on the trajectory of bullion prices, he said.
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