Gold prices declined for the second successive day, falling by ₹500 to ₹99,120 per 10 grams in the national capital on Friday as easing global trade tensions dampened the safe-haven demand.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had finished at ₹99,620 per 10 grams on Thursday.
Locally, gold of 99.5 per cent purity also decreased ₹500 to ₹98,750 per 10 grams (inclusive of all taxes) on Friday, as against the previous closing level of ₹99,250 per 10 grams.
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However, silver prices traded flat at ₹1,15,000 per kilogram (inclusive of all taxes) on Friday, as per the association.
“Gold edged lower on Friday impacted by easing tariff-related concerns, a rebound in the US dollar, and waning expectations for multiple interest rate cuts by the US Federal Reserve due to a strong job market,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Gandhi further highlighted that the US has already secured a trade deal with Japan, and there is optimism surrounding the US-EU trade agreement. Additionally, the US is expected to have trade pacts with India, Mexico, and Brazil, which may further increase selling pressure in bullion.
Spot gold fell by USD 20.72 or 0.62 per cent to USD 3,347.94 per ounce in the international markets.
"Gold traded weak at USD 3,345 per ounce, as expectations of tariff deals between the US and trade partners like Japan and the EU reduced safe-haven appeal.
"These developments may keep gold volatile, especially at elevated levels. Focus now shifts to the upcoming Fed's interest rate decision next week, which will be crucial for the direction of bullion prices," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
On the global front, spot silver slipped by 0.35 per cent to trade at USD 38.92 per ounce.
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