Gold tumbles Rs1,000 to Rs79,400/10 gm; silver plunges Rs1,600
Analysts cited fading war premiums and profit-booking as key factors, alongside anticipation of U.S. jobless claims and FOMC meeting minutes for further direction. On MCX, December gold futures fell Rs1,071 to Rs76,545 per 10 grams. Globally, Comex gold dropped $40.80 to $2,696.40 per ounce amid easing geopolitical tensions and a focus on US inflation data
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New Delhi: Gold prices tumbled Rs1,000 to slip below the Rs80,000 level in the national capital on Monday amid weak global trends, according to local marketmen. The precious metal of 99.9 per cent purity tanked Rs1,000 to Rs79,400 per 10 grams against the previous close of Rs80,400 on Friday. Silver declined Rs1,600 to Rs91,700 per kg. The metal finished at Rs93,300 per kg on Friday. The price of gold with 99.5 per cent purity plunged Rs1,000 to Rs79,000 per 10 grams. The yellow metal had settled at Rs80,000 per 10 grams in the previous session on Friday. "Gold witnessed a sharp decline of more than Rs1,000 below Rs76,500, as the war premium faded, with no fresh geopolitical escalations over the weekend to sustain the rally," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
Last week's strong surge in MCX and Comex prices prompted profit booking, leading to the unwinding of long positions. This week, traders will await weekly jobless claims and the Fed's Federal Open Market Committee (FOMC) meeting minutes, which will more direction for the yellow metal, Trivedi added. Meanwhile, in futures trade on the MCX, gold contracts for December delivery plunged Rs1,071 or 1.38 per cent to trade at Rs76,545 per 10 grams. It closed at Rs77,616 per 10 grams in the previous trading session. Silver contracts for December delivery declined Rs1,468 or 1.62 per cent to Rs89,300 per kg against the previous close of Rs90,768 per kg on Friday. Last week, the yellow metal went beyond the $2,700 mark due to the worsening conflict between Russia and Ukraine.
On Monday, Comex gold futures fell $40.80 per ounce or 1.49 per cent to $2,696.40 per ounce in the global markets. "Gold resumed trading on a weaker note and fell below $2,700 per ounce on Monday, as traders took profit following nearly a 6 per cent rally last week, fuelled by safe-haven demand amid rising tensions in the Russia-Ukraine crisis," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. In the Asian market hours, silver also quoted 1.7 per cent lower at $31.24 per ounce.
According to Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers, gold fell over one per cent on Monday amid reports that Israel was close to reaching a ceasefire with Lebanon's Hezbollah. However, much of the renewed upside this week depends on the developments in the Russia-Ukraine, where investors are advised to remain vigilant amid any escalation could lead to renewed short-covering moves in gold. Focus to remain on dollar strength amid macroeconomic data, including the US Personal Consumption Expenditures (PCE) price index would be crucial on cues for inflation in the near term, which could cap a sharp upside in the near term, Sharma said.
