Continued selling by stockists led to lower gold prices in the national capital on Thursday, according to the All India Sarafa Association.
Gold was down by ₹200 to ₹98,670 per 10 grams as global demand trends remained subdued.
The precious metal of 99.9 per cent purity went lower by ₹500 to close at ₹98,870 per 10 grams on Wednesday, while gold of 99.5 per cent purity declined by ₹200 to ₹98,200 per 10 grams (inclusive of all taxes) on Thursday. It had finished at ₹98,400 per 10 grams in the previous market close.
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As per the association, silver prices also lowered by ₹500 to ₹1,10,500 per kilogram (inclusive of all taxes) on Thursday. The white metal had ended at ₹1,11,000 per kg on Wednesday.
With the US-China tensions abating after AI chip ban sanctions were lifted by the US administration, gold’s demand as a safe-haven back-up eased, signalling a downward trend, said Chintan Mehta, Chief Executive Officer at Abans Financial Services.
“Meanwhile, steep 30 per cent tariffs were imposed on Mexico and the European Union, and the possibility of further negotiations kept market fears in check. This has reduced the urgency for safety trades like gold, weighing on prices," he added.
However, the broader uncertainty from aggressive tariff actions continues to offer some underlying support, limiting the downside for the yellow metal, Mehta added.
Globally, spot gold fell by USD 21.55 or 0.64 per cent to USD 3,326.05 per ounce.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, opined that gold edged lower as traders turned cautious ahead of US macroeconomic data reveal and speeches by several Fed Reserve officials.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, gold traded weak below USD 3,330 per ounce as the dollar index strengthened above 98.75, following higher-than-expected US CPI inflation data, which dampened hopes of an immediate interest rate cut by the Fed.
Spot silver went lower by 0.11 per cent to trade at USD 37.86 per ounce in the international markets.
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