Gold prices in the national capital saw a significant drop on Thursday, with 10 grams of 99.9% purity gold falling by Rs 1,400 to Rs 99,620. This decline, attributed to profit-booking by stockists and a subdued global trend, follows Wednesday’s close of Rs 1,01,020. Similarly, 99.5% purity gold also decreased by Rs 1,200 to Rs 99,250 (inclusive of all taxes).
According to Pranav Mer, Vice President, EBG, Commodity & Currency Research, JM Financial Services, the fall in gold prices is primarily due to profit-booking as risk premiums eased following the US’s trade agreements with Japan and the Philippines. These deals have spurred expectations of further agreements, particularly with China and Europe. However, a weaker dollar against major currencies might offer some support to prices.
Silver also experienced a sharp decline, plunging by Rs 3,000 to Rs 1,15,000 per kilogram (inclusive of all taxes) on Thursday, after rallying to a lifetime high of Rs 1,18,000 per kg on Wednesday.
In international markets, spot gold dropped by $24.35, or 0.72%, to $3,362.88 per ounce. Saumil Gandhi, Senior Analyst, Commodities, at HDFC Securities, noted that gold retreated from a five-week high as optimism surrounding the trade deals reduced the demand for safe-haven assets. Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities, added that fresh deal announcements have diminished gold’s appeal in the short term, as it had previously gained amid stalled tariff negotiations.
Globally, spot silver also saw a decline of 0.53% to trade at $39.05 per ounce. Looking ahead, Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers, highlighted that market focus will be on the US weekly jobless claims numbers and S&P Global flash PMI data on Thursday to assess economic health ahead of the Federal Reserve’s monetary policy decision next week. Traders will also be watching the European Central Bank’s interest rate decision later in the day, which could introduce volatility in global currency pairs.
