New Delhi, Mar 5 (PTI) Gold prices plunged by Rs 7,600 per 10 grams and silver tanked by Rs 27,700 per kg in the national capital on Thursday following profit taking by investors after recent gains.
According to the All India Sarafa Association, silver dropped sharply by Rs 27,700, or 9.23 per cent, to Rs 2,72,300 per kilogram (inclusive of all taxes).
“Silver prices witnessed heightened volatility on Thursday as strong safe-haven demand triggered by escalating US-Israel-Iran geopolitical tensions was countered by sharp profit-booking at elevated levels,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
Bullion markets remained closed on Tuesday and Wednesday due to Holi.
Gold of 99.9 per cent purity also slumped by Rs 7,600, or 4.4 per cent, to Rs 1,65,200 per 10 grams (inclusive of all taxes). It settled at Rs 1,72,800 per 10 grams in the previous market session.
“Gold prices declined on Thursday amid weak global cues, while a stronger Indian rupee weighed on domestic bullion,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
Globally, spot silver was trading marginally higher at USD 84.11 per ounce, while gold gained USD 12.60, or 0.25 per cent, to USD 5,153.91 per ounce.
“Gold is presently caught between the opposing impacts of strong US data and geopolitical tensions,” Praveen Singh, Head of commodities and currencies at Mirae Asset ShareKhan, said.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said investors will now shift their focus to key US macroeconomic data, including initial jobless claims due later in the day and the more critical unemployment rate and nonfarm payrolls numbers scheduled to be released on Friday.
“These data points will play an important role in shaping expectations around the Federal Reserve’s interest rate outlook and could drive the next directional move in gold prices,” he added. PTI HG MR
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