Gold prices fell by Rs 400 to Rs 71,550 per 10 grams in the national capital on Friday, tracking a weak trend in global markets, according to the All India Sarafa Association. The precious metal had closed at Rs 71,950 per 10 grams in the previous session.
Silver Prices Take a Hit
Silver also witnessed a sharp decline, plunging Rs 5,000 to Rs 2,60,700 per kg. In the prior session, the white metal had settled at Rs 2,65,700 per kg. The decline was in line with global cues where silver prices slipped amid a stronger US dollar and rising bond yields.
Global Market Impact
Internationally, gold prices fell 0.3% to $2,350 per ounce in spot markets, while silver dropped 1.2% to $31.50 per ounce. Analysts attributed the weakness to expectations of prolonged higher interest rates by the US Federal Reserve, which dampened demand for non-yielding assets like gold and silver.
In the domestic market, traders noted that the rupee's depreciation against the US dollar also added to the bearish sentiment, making imports costlier. However, the overall demand for physical gold remained subdued as buyers awaited further price corrections.
The All India Sarafa Association reported that gold of 99.9% purity fell Rs 400 to Rs 71,550 per 10 grams, while 99.5% purity gold declined by the same margin to Rs 71,200 per 10 grams. Silver coins remained steady at Rs 93,000 for buying and Rs 94,000 for selling per 100 pieces.
Market participants are now eyeing upcoming US economic data, including non-farm payrolls, for further direction on interest rate trajectory.
