Gold prices in the national capital saw a dip of Rs 400 on Friday, settling at Rs 97,620 per 10 grams, according to the All India Sarafa Association. This marks a decrease from the previous session’s closing price of Rs 98,020 per 10 grams. Gold of 99.5 per cent purity also declined by Rs 300 to Rs 97,500 per 10 grams.
The weakening trend in gold is largely attributed to softness in international markets, where spot gold was trading near USD 3,290 per ounce. Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, noted that the continuous hawkish stance of the US Federal Reserve and the absence of any immediate indications of interest rate cuts have dampened sentiment for safe-haven assets like gold.
Silver prices also continued their downward trajectory for the second consecutive day, plummeting by Rs 2,500 to Rs 1,09,500 per kilogram. The white metal had closed at Rs 1,12,000 per kg in the preceding session.
Globally, spot gold showed a marginal increase of 0.12 per cent, trading at USD 3,294.31 per ounce. However, the overall weekly outlook for gold remains negative. Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, highlighted that the decline is due to a general decrease in safe-haven demand and a robust recovery in the US dollar, which surged to a nine-week high, gaining over 2 per cent this week.
Meanwhile, spot silver internationally slipped by 0.75 per cent to USD 36.44 per ounce in New York. Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services, explained that silver prices remained subdued due to a fall in industrial metals and market participants exercising caution amidst global tariff uncertainties. Modi also mentioned that the US central bank maintained interest rates in the 4.25-4.50 per cent range, and Federal Reserve Chair Jerome Powell’s comments post-decision curbed expectations for a September interest rate cut.
Market participants are now keenly awaiting the US non-farm payroll data, which is due later today, along with any further updates regarding tariffs.
