Gold prices fell by Rs 350 to Rs 73,800 per 10 grams in Delhi on Friday, as reported by the All-India Sarafa Association. Previously, gold with 99.9% purity was trading at Rs 74,150 per 10 grams.
Silver saw a decrease of Rs 200, closing at Rs 87,000 per kg, down from Rs 87,200 per kg the previous day. Concurrently, 99.5% pure gold also fell by Rs 350, settling at Rs 73,450 per 10 grams compared to Rs 73,800 per 10 grams on Thursday.
Gold prices continued to decline on Friday, pressured by the increase in US Treasury yields and a rebound in the dollar index, according to market specialists. The release of the latest Monetary Policy Committee minutes by the Reserve Bank of India on Thursday also played a role in influencing the prices of the precious metal.
Reserve Bank Governor Shaktikanta Das stated that the current policy rate of 6.5% is generally balanced, and any argument for policy easing at this point could be deceptive, as per the MPC minutes. Governor Das, along with three other members, voted to maintain the repo rate, whereas two members recommended a reduction.
Globally, gold at Comex gained $18.20 to trade at $2,534.90 per ounce. Silver was trading 1.24% higher at $29.84 per ounce in the international markets.
Minutes from the US Federal Reserve's July meeting revealed a strong inclination toward a rate cut next month, a move supported by at least two Fed officials, Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd, said.
"Speculators overstated the likelihood of an aggressive rate cut before the end of the year; now they trimmed their bets and are pricing three 25-basis-point cuts across the remaining three Fed policy meetings this year, down from around four cuts priced two days ago," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
This led to a recovery in Treasury yields and the dollar index from their recent lows, he added.
On the outlook, Mallya said that gold is likely to find support as the market anticipates potential rate cuts by the US Fed.
Market traders also await Fed Chair Jerome Powell's speech at the Jackson Hole symposium on Friday.
(With PTI Inputs)
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