Gold prices declined by ₹700 to ₹1,41,800 per 10 grams in Delhi on Tuesday amid weak global cues and a recovery in crude oil prices. Silver also fell sharply by ₹2,000 to ₹1.84 lakh per kilogram.
New Delhi, November 3 — Gold prices declined by ₹700 to ₹1,41,800 per 10 grams in the national capital on Tuesday as a global sell-off and recovery in international crude oil prices made investors cautious.
According to the All India Sarafa Association, gold of 99.9% purity fell to ₹1,41,800 per 10 grams, inclusive of all taxes, compared with Monday’s closing price of ₹1,42,500 per 10 grams.
Silver prices also witnessed a sharp correction.
The white metal declined ₹2,000 to ₹1.84 lakh per kilogram, inclusive of taxes. Silver had closed at ₹1.86 lakh per kg in the previous session.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said gold prices pared gains amid weak global cues and a recovery in crude oil prices in the international market.
However, domestic demand during the approaching festive season could provide some support to bullion prices.
Jewellery purchases are expected to gain momentum ahead of Dhanteras and Diwali, when buying gold is traditionally considered auspicious.
International bullion markets also remained under pressure.
Spot gold declined $41.19, or 1.04%, to $3,905.44 per ounce, while international silver prices fell more than 3% to $48.97 per ounce.
LKP Securities VP Research Analyst for Commodity and Currency Jateen Trivedi said gold witnessed a sharp decline as traders continued to book profits.
The recent selling has pushed bullion prices closer to oversold territory, although a sustained recovery will depend on renewed buying interest and developments in global markets.
Investors are now closely monitoring several important developments in the United States.
These include the US election outcome, unemployment figures and nonfarm payroll data, which could provide fresh indications about the Federal Reserve’s future monetary policy stance.
Any change in expectations around US interest rates could influence the dollar and consequently affect global gold prices.
For domestic buyers, meanwhile, festive demand could provide some support despite weakness in international bullion markets.
