Gold Prices Plunge Rs 4,100 to Rs 1,21,800 per 10g; Fall Below USD 4,000/oz Globally
New Delhi: Gold prices tumbled by Rs 4,100 to Rs 1,21,800 per 10 grams in the national capital on Tuesday, slipping below the USD 4,000-per-ounce mark in global markets as easing US-China trade tensions dampened demand for the safe-haven asset.
According to the All India Sarafa Association, the yellow metal had closed at Rs 1,25,900 per 10 grams on Monday. In the local bullion market, gold of 99.5% purity also fell by Rs 4,100 to Rs 1,21,200 per 10 grams (inclusive of taxes), compared to the previous close of Rs 1,25,300.
“Gold extended its losses on Tuesday amid waning safe-haven demand. Selling intensified after the metal failed to sustain above the crucial USD 4,000 level, triggering technical selling,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Silver too witnessed a sharp decline, plunging Rs 6,250 to Rs 1,45,000 per kilogram (inclusive of taxes). The white metal had ended at Rs 1,51,250 per kg on Monday.
In the international market, spot gold remained under pressure, dropping USD 94.36, or 2.37%, to USD 3,887.03 per ounce. In the previous session, it had already slipped below the USD 4,000 mark, falling USD 132.02, or 3.21%.
“Spot gold continues to remain weak amid reduced safe-haven demand following optimism over the US-China trade deal,” said Praveen Singh, Head of Commodities and Currencies at Mirae Asset Sharekhan.
Market sentiment was further influenced by reports that US President Donald Trump and Chinese President Xi Jinping are close to finalising a trade deal framework, with follow-up meetings expected soon. Trump’s optimism over a potential agreement with Japan also weighed on bullion prices.
Singh added that outflows from global gold-backed exchange-traded funds (ETFs) continued for a third consecutive day on October 24, further pressuring prices. “Investors are also awaiting the outcome of the US Federal Open Market Committee (FOMC) meeting on Wednesday, where a 25 basis point rate cut is widely expected,” he noted.
Spot silver also mirrored gold’s weakness, dropping 2.85% to an intra-day low of USD 45.56 per ounce.
Gandhi of HDFC Securities added, “We expect the correction in gold to continue, with potential downside of 5–10%, as major players book profits after a more than 50% surge in prices this year.”
