Last Update:04 November 2024 17:29 IST

The 99.9 per cent pure precious metal traded flat at an all-time high of Rs 82,400 per 10 grams on Thursday.

Prices of 99.5 per cent pure gold fell by Rs 1,300 to Rs 80,700 per 10 grams.

Gold Rate Trend in India Today: Gold prices in the national capital fell sharply on Monday, falling by Rs 1,300 to Rs 81,100 per 10 grams, driven by fresh sales from stockists and retailers, according to the All India Sarafa Association. This marks a decline from last Thursday’s all-time high of Rs 82,400 per 10 grams of 99.9% purity gold.

While Gold Prices See Sharp Fall Amid Selling Pressure, Silver Falls Below Rs 95,000

The 99.9% pure precious metal traded flat at an all-time high of Rs 82,400 per 10 grams on Thursday.

Silver also came under selling pressure and fell below the Rs 95,000 level, losing value of Rs 4,600 to Rs 94,900 per kg. It closed at Rs 99,500 per kg on Thursday.

Traders said weak demand from jewelers and retailers in the local markets has put pressure on gold prices.

Prices of 99.5 per cent pure gold fell by Rs 1,300 to Rs 80,700 per 10 grams. The yellow metal had closed at Rs 82,000 per 10 grams (an all-time high) in the previous session on Thursday.

Futures Market Shows Decline

In futures trading on the Multi Commodity Exchange (MCX) on Monday, gold contracts for December delivery were traded at Rs 78,538 per 10 grams, down Rs 329 or 0.42%.

Why is the Gold Price Falling?

Market Volatility and Key Influencers

“Gold prices were volatile with Comex gold finding support near USD 2,730 but struggling to rise above USD 2,750.

“With the US election results due to be announced in the next two days, market participants are expected to have mixed sentiments, which is likely to result in a flat session between Rs 78,000 and Rs 79,000 on MCX,” said Research Analyst Jateen Trivedi, Vice President, Commodities and Foreign Exchange. LKP Securities said.

Last week, the yellow metal touched a lifetime high of 79,775 rupees per 10 grams.

Silver contracts for December delivery fell Rs 412 or 0.43% to Rs 95,071 per kg on MCX.

Globally, Comex gold futures rose 0.13%, or US$3.6 per ounce, to US$2,752.80 per ounce.

“Gold prices are trading slightly lower on profit booking as traders look for new clues on the demand front and keep positions light ahead of key events such as US elections/Federal Reserve policy decision and other data from the global market.” BlinkX and JM Financial said Pranav Mer, Vice President, Research (Commodity and Currency).

Broader Economic Impact and Forecasts

According to Praveen Singh, Vice President of Core Currencies and Commodities at BNP Paribas’ Sharekhan, gold was quite choppy and choppy on Monday as it rose on the disappointing US non-farm payrolls report, but fell as yields rose with focus on the US presidency. election results and a possible increase in the fiscal deficit.

On the other hand, Comex silver futures traded at USD 32.94 per ounce, up 0.78% in the Asian market.

“Going forward, traders believe the gold price should consolidate within a wider range ahead of the results of the two-event US presidential election and the Federal Open Market Committee (FOMC) meeting.

“From a macro perspective, US factory orders will be announced later on Monday, which could lead to short-term volatility in gold,” said Saumil Gandhi, Senior Commodity Analyst at HDFC Securities.

Long Term Outlook for Gold

Gold is expected to rise higher than previously expected as central banks in emerging markets step up their purchases, according to a report by Goldman Sachs Research.

The precious metal is predicted to rise to $3,000 per ounce by the end of 2025.

The report noted that emerging market central bank gold purchases have increased significantly since Russia’s central bank assets were frozen in 2022 following Russia’s invasion of Ukraine.

(with PTI inputs)