Gold Prices Trade Flat, Silver Prices Fall In National Capital

Gold prices traded flat at Rs 82,400 per 10 grams while silver prices dropped by Rs 1,500 per kg in the national capital on Thursday, according to the All India Sarafa Association.

The precious metal had rallied Rs 1,000 to breach the Rs 82,000 per 10 grams level for the first time in Delhi on Wednesday.

Gold of 99.5% purity also ruled flat at Rs 82,000 per 10 grams -- its all-time high level -- on Thursday.

However, silver was under selling pressure and fell below the Rs 1 lakh mark, declining by Rs 1,500 to Rs 99,500 per kg after five straight days of gains. It had closed at Rs 1.01 lakh per kg on Wednesday.

Meanwhile, in futures trade on the Multi Commodity Exchange, gold contracts for December delivery declined Rs 308 or 0.39% to trade at Rs 79,428 per 10 grams.

Silver contracts for December delivery plunged Rs 1,016 or 1.04% to Rs 96,724 per kg on the bourse.

"Gold prices witnessed slight profit-taking as traders preferred to secure gains from recent rallies ahead of Friday’s key events -- the Non-Farm Payroll and unemployment reports," Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.

Currently, gold is trading around at Rs 79,400 in MCX, and facing a resistance at Rs 79,600, while Comex shows a hurdle near $2,790 per ounce. The upcoming US election next week is expected to be a decisive factor for gold's trend, with market participants closely watching its outcome for further direction, Trivedi said.

In the international markets, Comex gold futures trading 0.36% lower to $2,790.80 per ounce.

"Gold is expected to range trade ahead of the US nonfarm payroll and ISM manufacturing reports slated to be released on Friday which will provide directions for the US Fed monetary policy interest path," Praveen Singh, Associate VP of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said.

Silver also traded 1.28% lower to $33.64 per ounce in the Asian market hours.

"Moving forward, market participants are now awaiting crucial US macroeconomic data, including inflation and nonfarm payroll reports, which could shed light on the pace of the US Federal Reserve's interest rate cuts.

Recent data has indicated the resilience of the US economy, fueling the ongoing debate over the size of interest rate cuts for the remainder of the year," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

According to MP Ahammed, Chairman, Malabar Group, this festive period has been a great one for Malabar Gold & Diamonds, as it recorded a turnover of Rs 3,484 crore this Diwali, a 30% rise over last year's Rs 2,680 crore.

The growth reflects the resurgence of demand in the Indian jewellery market, fuelled by robust consumer sentiment and a two-day Dhanteras muhurat that allowed a larger window for buyers.

The gold sector nationwide saw record-breaking sales as well, with estimates suggesting transactions totaling up to 39 tonnes, or nearly Rs 19,500 crore, driven by favorable monsoon conditions, rising gold prices, and increasing consumer preference for gold as a stable asset.