1 day before the festival of Dhanteras the Gold prices in the country fell Rs 400 to Rs 81,100 per 10 grams in the national capital on Monday amid weak trends in the overseas markets, according to the All India Sarafa Association. The precious metal of 99.9 percent and 99.5 percent purity had revisited its all-time of Rs 81,500 and Rs 81,100 per 10 grams, respectively, on Saturday.

However, Silver Remained Flat At Rs 99,500 Per Kg.

Meanwhile, gold of 99.5 percent purity declined Rs 400 to Rs 80,700 per 10 grams on Monday.

Ease in demand by jewellers and stockists in the local markets amid sluggish trend in the global markets led to a decline in gold prices, traders said. Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery decreased Rs 312, or 0.4 per cent, to Rs 78,220 per 10 grams.

“Gold prices experienced a decline at the beginning of the week, and weakened by Comex, as profit booking emerged amid signs of de-escalation in the Israel-Iran conflict,” Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities, said.

Silver contracts for December delivery plunged Rs 585, or 0.6 per cent, 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 reach the target of Rs 1.25 lakh per kg on the MCX and USD 40 per ounce on Comex in the next 12-15 months.

Globally, Comex Gold Futures Declined 0.38 Per Cent To Usd 2,744 Per Ounce.

Gold edges fell on Monday amid reports of fall in demand from the world’s largest gold consumer — China — in the first three quarters of 2024, compared to the same period a year ago, traders said. “Gold prices resumed trading on a weaker note on Monday due to a declining safe haven demand,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. 

Investors found relief in the less severe attack on Iran than expected, as Israel refrained from targeting Iran’s nuclear and oil facilities, Gandhi said. Comex silver futures quoted 0.63 percent lower to USD 33.57 per ounce in the Asian market hours.

“Comex gold prices hit a record high of USD 2,772.60 per ounce last week as a tightly contested race between Vice President Kamala Harris and former President Donald Trump boosted safe-haven demand. “However, prices retreated as strong US economic data raised expectations that the US Federal Reserve would take a cautious approach to monetary easing,” Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.

Concerns over the growing US Budget deficit and a pullback in the US Treasury yields — its highest level since late July — helped gold prices to rebound, Chainwala said.

As per Pranav Mer, Vice President, EBG — Commodity & Currency Research, JM Financial Services, market participants will closely watch the macroeconomic data from major economies, including US consumer confidence, GDP , and inflation data from Germany, Eurozone, and the US throughout the week. Further, US payroll data and the manufacturing PMI from across regions will also provide more insights on the trajectory of bullion prices, he said. 

 

 

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