Gold Rs. 100 reduced to Rs. 78,600 per 10 grams; In silver Rs. 500 jump

Gold prices in the national capital fell by Rs 100 to Rs 78,600 per 10 grams on Tuesday, according to the All India Sarafa Association. In the previous trading session, the precious metal touched Rs. 78,700 per 10 gm.

However, silver Rs. 500 with a jump of Rs. 90,500 per kg, which was earlier Rs. 90,000 per kg was against the ban.

On Tuesday, gold of 99.5 per cent purity fell by Rs 100 to Rs 78,200 per 10 grams.

Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), the gold contract for February settled at Rs. 35 or 0.05 percent to Rs. 76,179 per 10 grams was traded. Silver price for March delivery Rs. 87 or 0.1 percent down to Rs. 89,031 per kg.

Globally, Comex gold futures traded flat at USD 2,628.30 per ounce.

“Gold traded steady in a thin holiday session that saw prices consolidate with last week’s decline but was weighed down by a stronger dollar in the overseas market,” said Pranav Mer, vice-president, EBG – Commodity & Currency Research, JM Financial Services Ltd.

According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, trading volume is relatively quiet this week ahead of the Christmas holiday.

Meanwhile, the recovery in the US dollar following Friday’s decline acts as a headwind for precious metals, Gandhi said.

However, Comex silver futures in overseas markets fell 0.13 percent to $30.15 an ounce.

“Gold, in line with other commodities, is in consolidation mode amid thin liquidity conditions,” said Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Mir Asset Sharekhan.

Singh added that market participants will await US data, including the Philadelphia Fed non-manufacturing and Richmond manufacturing index, which will provide further clues on gold and silver prices going forward.