Gold prices extended losses for the second straight day after declining Rs 200 to Rs 79,000 per 10 grams in the national capital on Tuesday, according to the All India Sarafa Association.
The yellow metal of 99.9 per cent purity on Monday settled at Rs 79,200 per 10 grams.
However, silver prices surged Rs 2,400 to Rs 92,400 per kg against the previous close of Rs 90,000 per kg. The bullish sentiment in the silver market is primarily driven by industrial demand, traders said.
Prices of gold of 99.5 per cent purity slipped Rs 200 to Rs 78,600 per 10 grams.
It closed at Rs 78,800 per 10 grams on Monday.
It closed at Rs 78,800 per 10 grams on Monday.
Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery rose Rs 146 or 0.19 per cent to trade at Rs 76,833 per 10 grams.
Silver contracts for March delivery advanced Rs 1,251 or 1.38 per cent to Rs 92,061 per kg.
Globally, Comex gold futures climbed USD 7.40 per ounce or 0.28 per cent to USD 2,665.90 per ounce.
“Gold and silver prices witnessed higher swings in the previous session, pressured by a firm dollar after US President-elect Donald Trump threatened to impose steep tariffs on the BRICS group of countries to dissuade them from attempting to find alternatives to the dollar,” Manav Modi, Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said.
Trump’s threat dented the currencies of the bloc and pushed up the dollar, as traders feared even more protectionist policies from the US. This also led to further depreciation of the rupee marking an all-time low, Modi said.
Safe haven demand for gold was also stymied by signs that the Israel-Hezbollah ceasefire appeared to be holding, although heightened tensions between Russia and Ukraine kept some haven buying in play, he added.
According to Abans Holdings’ Chief Executive Officer, Chintan Mehta, gold prices remained stable as better-than-expected US manufacturing PMI data bolstered the US dollar.
The US Federal Reserve governor Christopher Waller on Monday maintained optimism over falling inflation and resilient labour market and continues to remain inclined to cut rates in December, Mehta added.
Silver quoted 1.93 per cent higher at USD 31.46 per ounce in the Asian market.
