Gold Slips Rs 150, Silver Declines Rs 500

New Delhi: Gold prices slipped Rs150 to Rs77,900 per 10 grams in the national capital on Wednesday amid a weak trend in the international market, according to local marketmen. The precious metal of 99.9 per cent purity had closed at Rs78,050 per 10 grams on Tuesday. Silver also declined Rs500 to Rs93,000 per kg on decreased offtake by coin makers and industrial units. It had settled at Rs93,500 per kg in the previous session. Price of gold of 99.5 per cent purity fell Rs150 to Rs77,500 per 10 grams against the previous close of Rs77,650 per 10 grams on Tuesday.

On Wednesday, the Multi Commodity Exchange (MCX) was closed for trading in the morning session due to assembly elections in Maharashtra. The exchange is carrying out trading in the evening session from 5-11.55 pm. In futures trade on the MCX, gold contracts for December delivery went lower by Rs127, or 0.17 per cent, to trade at Rs75,460 per 10 grams in the evening session. In the evening session, silver contracts for December delivery slumped Rs889, or 0.98 per cent, to Rs89,731 per kg. Globally, Comex gold futures fell $6 per ounce, or 0.23 per cent, to $2,625 per ounce.

According to commodities experts, gold price dropped during the first half of the European session bolstered by expectations of a less aggressive monetary policy easing by the US Federal Reserve (Fed). This, in turn, is seen as a key factor driving flows away from the yellow metal.

However, a positive risk tone further undermines demand for the safe-haven, which now seems to have snapped a two-day winning streak and stalled its recovery. The worsening conflict between Russia and Ukraine might continue to offer some support to the precious metal and pare some losses, they added. Further, traders are awaiting speeches from some of the Federal Open Market Committee (FOMC) members for cues about the trajectory of the interest rate-cut path. In the Asian market hours, silver traded 0.99 per cent lower at $31.38 per ounce.