Gold Declines To Rs 71,700 On Weak Demand
The decline was attributed to weakened demand from jewellers and retail buyers.
Gold prices in the national capital fell by Rs 1,100 to Rs 71,700 per 10 grams, down from Rs 72,800 per 10 grams in the previous session, on Tuesday. The decline was attributed to weakened demand from jewellers and retail buyers.
In the international markets, gold prices on Comex also experienced a drop, falling by $20 to $2,409 per ounce.
Silver also continued its slide for the fourth session, plummeting by Rs 2,200 to Rs 82,000 per kg on Tuesday from Rs 84,200 per kg in the previous trade, according to the All India Sarafa Association. Silver prices have fallen by Rs 4,200 per kg in the four sessions since Aug. 2 when it traded at Rs 86,000 per kg.
Dilip Parmar, research analyst at HDFC Securities, said that the weakness of the rupee and increased physical demand due to the upcoming festive season are likely to support domestic gold prices.
Parmar highlighted that global uncertainty, central bank purchases, and lower interest rates are favourable factors for gold prices.
"Gold fell more than 1% on Monday, caught in the slipstream of a global, wider market sell-off driven by mounting economic worries and Yen carry trade unwinding, however geopolitical tensions and rate cut expectations are cushioning the prices," Manav Modi, senior analyst of Commodity Research at Motilal Oswal Financial Services, said.
"BOJ had a negative interest rate for more than 18 years, and a sudden increase in interest rate reduced the rate differential between Japan and the US, influencing a carry trade unwinding, and increasing pressures in major asset classes," he said.
(With inputs from PTI)
