Gold Prices Drop ₹300 To ₹1,25,300/10g As Stronger Dollar, Trade Optimism Weigh On Demand
New Delhi: Gold prices slipped by ₹300 to ₹1,25,300 per 10 grams in the national capital on Monday, pressured by a firm dollar and easing global uncertainties that reduced safe-haven demand.
According to the All India Sarafa Association, gold of 99.5% purity declined by ₹300 to ₹1,24,700 per 10 grams (inclusive of all taxes), compared to Friday’s close of ₹1,25,000. Similarly, gold of 99.9% purity fell to ₹1,25,300 per 10 grams from ₹1,25,600 on Friday.
In contrast, silver surged ₹1,000 to ₹1,54,000 per kilogram (inclusive of all taxes), up from ₹1,53,000 per kg in the previous session.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up 0.09% to 99.89, weighing on bullion prices.
In global markets, spot gold slipped below the USD 4,000 mark, easing 0.14% to USD 3,996.77 per ounce, while silver was marginally lower at USD 48.64 per ounce.
“Gold extended losses below USD 4,000 per ounce as expectations of further rate cuts faded and safe-haven demand eased following the US-China trade deal,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, China’s removal of a long-standing tax incentive on gold sales could lift consumer prices and dampen demand in one of the world’s largest bullion markets.
“Investors will now track key US economic indicators this week, including ISM PMI and ADP private payroll data, for cues on future monetary policy,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
