New Delhi, Nov 21 (PTI) Gold prices declined by Rs 600 to Rs 1,26,100 per 10 grams in the national capital on Friday, tracking a weak global trend, according to the All India Sarafa Association.
The precious metal of 99.5 per cent purity depreciated by Rs 600 to Rs 1,25,500 per 10 grams (inclusive of all taxes).
In the local bullion, silver prices also tumbled by Rs 2,000 to Rs 1,56,000 per kilogram (inclusive of all taxes).
On the global front, spot gold was trading 0.38 per cent lower at USD 4061.91 per ounce while silver futures fell by 2.13 per cent to USD 49.56 per ounce.
Renisha Chainani, Head – Research at Augmont, said that a better-than-expected US jobs data has strengthened predictions that the Federal Reserve would not lower interest rates at its December meeting, which has caused precious metals to trade mutedly.
The highly anticipated US Labour Department report, which was postponed due to the federal government shutdown, revealed that nonfarm payrolls climbed by 119,000 in September—more than twice the projected gain of 50,000.
In futures trade, gold prices pared losses in the second half of the day due to a sharp fall in the rupee against the US dollar.
The most-traded December contract of the metal rose by Rs 1,168 or 0.95 per cent to Rs 1,23,895 per 10 grams on MCX. The far-month February contract jumped by Rs 1,071 or 0.86 per cent to Rs 1,25,405 per 10 grams.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold traded highly volatile as Comex gold fell 1 per cent to USD 4,035, down by USD 41, while MCX gold rose due to a sharp rupee depreciation of nearly 1 per cent from 88.70 to 89.60.
“The weak rupee offset global pressure, keeping domestic prices resilient. Stronger-than-expected U.S. Nonfarm Payroll data weakened expectations of a December rate cut by the Federal Reserve, weighing on global sentiment. Gold is expected to remain volatile within a range of Rs 1,20,000–1,24,000 per 10g.” PTI HG MR
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