Gold Prices Slip Post Festive Rally, Global Prices Hold Steady

Domestic gold prices cooled off after a rally which was driven by festive season demand last week. Gold prices stood at Rs 79,030 as of 8:45 a.m., according to the Bullion Association. The domestic prices had dipped to Rs 78,670 on Oct. 31 and have stayed flat at Rs 79.030 since Nov. 1.

The prices had climbed up to Rs 81,500 on Oct. 23, ahead of festivities. The gold futures prices for Dec. 5 also slipped by 0.11% to Rs 78,778, according to the Multi Commodity Exchange. The yellow metal's price rally has paused after Diwali, since the beginning of November.

The prices had hovered over the record high mark, after the festivity driven purchases pushed the domestic prices higher. The reduction in these purchases have given the commodity the space to cool off.

The lowest prices recorded during the last month was Rs 75,060 on Oct. 9 after the dip in July. The prices had slipped reacting to the customs duty cut announcement.

The international prices for the commodity stood at $2,741 on Monday according to Bloomberg. While the intraday high was recorded at $2,742.

The commodity continues to be a safe play for the global investor. The week ahead is bound to see some reaction from the commodity, as US elections take place. The election, along with the various cues from other resource supply, would have a direct impact on the global prices.

Domestic prices for silver stood at Rs 95,760 as of 8:45 a.m., according to the Bullion Association. Silver prices had also been on a steady climb through the festive season.

The commodity prices were comfortably above Rs 88,000 and hit a record high of Rs 1,00,180 this month as well.

The futures prices of the commodity for Dec. 5 also slipped to Rs 95,460 according to MCX.