New Delhi, Oct 27 (PTI) Silver prices tumbled below the Rs 2 lakh per kg mark for the first time in over 10 months in the national capital on Tuesday, and gold dropped Rs 500, as weakness in global bullion markets and a stronger dollar weighed on investors’ sentiment.
The white metal plunged Rs 4,000 to Rs 1.98 lakh per kilogram, inclusive of all taxes, its lowest level in 10 months, according to the All India Sarafa Association.
Silver had closed at Rs 2.02 lakh per kg in the preceding session. The white metal had quoted at Rs 1,98,500 per kg on December 16.
Gold of 99.9 per cent purity also depreciated by Rs 500 to Rs 1,45,800 per 10 grams, inclusive of all taxes, from Monday’s closing level of Rs 1,46,300 per 10 grams.
“Gold traded weak in the domestic markets as dollar strength and continued weakness in international precious metal prices kept it under pressure,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
On the outlook, Trivedi said domestic gold prices are expected to remain volatile, with a range of Rs 1.40-1.44 lakh per 10 grams in the near term.
In global markets, spot gold edged lower marginally to USD 4,011.44 per ounce, and silver fell over 1 per cent to USD 53.41 per ounce.
“Gold is consolidating near USD 4,000 per ounce in overseas trade after hitting a three-month low of USD 3,975, as easing oil prices offer some relief,” said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.
Gaurav Garg, Head of Research at brokerage platform Lemonn, said silver is underperforming gold and reflects stronger selling pressure below the USD 54 per ounce level, near an 11-month low and concerns about industrial demand.
“Investors remained cautious ahead of the US Federal Reserve’s October 28 monetary policy meeting, with the rate decision and forward guidance by Chair Kevin Warsh likely to determine the next directional move,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. PTI HG HG BAL
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