New Delhi: Gold prices slumped by Rs 1,500 to Rs 1,29,400 per 10 grams in the national capital on Friday, tracking weak global cues after Federal Reserve officials suggested that a lack of fresh economic data could delay upcoming rate cuts.
According to the All India Sarafa Association, gold of 99.5 per cent purity dropped by Rs 1,500 to Rs 1,28,800 per 10 grams (inclusive of all taxes), compared with Thursday’s close of Rs 1,30,300. In the previous session, gold of 99.9 per cent purity had settled at Rs 1,30,900 per 10 grams.
“Gold softened at the end of the week as uncertainty over the Federal Reserve’s next rate cut increased,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. He noted that many Fed officials have adopted a cautious stance due to the absence of new economic data amid government shutdown-related delays since October 1.
Silver also witnessed a sharp decline, tumbling by Rs 4,200 to Rs 1,64,800 per kilogram (inclusive of all taxes), after closing at Rs 1,69,000 on Thursday.
In global markets, spot gold slipped by USD 33.58, or nearly 1 per cent, to USD 4,137.88 an ounce, while spot silver was down 0.49 per cent at USD 52.03 per ounce.
“Gold prices remained under pressure after remarks from Federal Reserve members indicated that the delay in fresh economic data could push back further rate cuts. A stronger dollar index added to the downward pressure,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
