Gold Declines Rs 1,400; Silver Nosedives Rs 4,200

New Delhi: Gold and silver prices slumped in the national capital on Friday, with the precious metal plummeting to below the Rs 80,000-mark due to heavy selling by jewellers and stockists, according to the All India Sarafa Association. Besides, a weak trend in the international markets weighed down heavily on the bullion prices, traders said. The precious metal of 99.9 per cent purity dived Rs 1,400 to Rs 79,500 per 10 grams. It had finished at Rs 80,900 per 10 grams in the previous session. Silver plummeted Rs 4,200 to Rs 92,800 per kg, marking the single biggest fall in the month of December.

On Thursday, the white metal ended at Rs 97,000 per kg in the previous trading session. The price of gold of 99.5 per cent purity also declined Rs 1,400 to Rs 79,100 per 10 grams from the previous close of Rs 80,500 per 10 grams. “Gold witnessed a sharp sell-off as profit booking intensified following mixed signals from the US economic data such as Producer Price Index (PPI) came in lower and higher weekly jobless claims which prompted a retreat in gold prices to $2,670 on Comex,” said Jateen Trivedi, VP Research Analyst -- Commodity and Currency at LKP Securities. Comex gold futures dipped $18.60 per ounce, or 0.69 per cent, to $2,690.80 per ounce. Silver traded 1.42 per cent lower at $31.17 per ounce.

Similarly, MCX gold tumbled on Friday. The current weakness suggests a potential trading range of Rs 76,000-78,000 in MCX, with the short-term outlook remaining cautious amid ongoing market volatility, Trivedi said. Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery declined Rs 539, or 0.69 per cent, to Rs 77,430 per 10 grams.