New Delhi: Gold prices tumbled by ₹1,200 to ₹1,24,100 per 10 grams in the national capital on Tuesday, tracking weak global cues after remarks from several US Federal Reserve officials dampened hopes of another rate cut next month.
Gold of 99.5 per cent purity declined by ₹1,200 to ₹1,23,500 per 10 grams (inclusive of all taxes), marking its second consecutive day of losses. The metal had settled at ₹1,24,700 per 10 grams on Monday.
In the local bullion market, gold of 99.9 per cent purity had ended the previous session at ₹1,25,300 per 10 grams.
“Gold prices fell on Tuesday, weighed down by a stronger US dollar and hawkish comments from several Federal Reserve officials who dismissed the likelihood of a rate cut next month,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Silver also witnessed a sharp drop of ₹2,500, settling at ₹1,51,500 per kilogram (inclusive of all taxes) compared to ₹1,54,000 per kg in the previous session.
The US dollar index, which measures the greenback’s strength against six major currencies, rose 0.12 per cent to 99.99 — a three-month high — adding further pressure on precious metals.
In international markets, spot gold slipped by USD 7.84, or 0.2 per cent, to USD 3,993.65 per ounce, while silver fell nearly 1 per cent to USD 47.73 per ounce.
Meanwhile, Fed officials Lisa Cook, Mary Daly, and Austan Goolsbee expressed concerns over the labour market but avoided signaling support for a December rate cut.
“Investor focus now turns to the upcoming ADP employment and ISM PMI data. However, waning safe-haven demand and China’s withdrawal of gold tax incentives could weigh further on market sentiment,” said Kaynat Chainwala, AVP – Commodity Research, Kotak Securities.
