New Delhi: Gold prices plunged by Rs 1,350 to Rs 93,000 per 10 grams, bringing an end to its five-day record rally, in the national capital Friday amid a weak trend in the international markets, according to the All India Sarafa Association.
Thursday, the precious metal of 99.9 per cent purity had climbed Rs 200 to hit a fresh peak of Rs 94,350 per 10 grams.
Snapping a five-day winning streak, gold of 99.5 per cent purity also declined by Rs 1,350 to Rs 92,550 per 10 grams from Thursday’s closing level of Rs 93,900 per 10 grams.
“Gold prices declined as safe-haven demand eased following the implementation of new tariffs by US President Donald Trump.
“Investors have shifted their focus to global trade dynamics and the potential economic repercussions, which could weigh on growth and dampen business sentiment,” said Chintan Mehta, Chief Executive Officer at Abans Financial Services.
Silver prices also tanked by Rs 5,000, logging the steepest fall in four months, to Rs 95,500 per kg. The white metal had settled at Rs 1,00,500 per kg in the previous market close.
“Gold prices fell to their lowest level in a week, while silver reached a five-week low. Although both metals initially gained momentum during the press conference, they later retracted due to a broader sell-off in global equities,” Rahul Kalantri, VP Commodities, Mehta Equities, said.
On the global front, spot gold fell USD 21.74 or 0.70 per cent to USD 3,093.60 per ounce.
Spot silver fell 1.69 per cent in the Asian markets hours to USD 31.32 per ounce.
According to Mehta of Abans Financial Services, investors are flocking to US Treasury bonds, pushing yields below 4 per cent as markets increasingly price in deeper rate cuts by the US Federal Reserve (Fed) this year.
“The steepest trade barriers imposed by the US have intensified the trade war, heightening fears of a global recession,” he said, adding, market participants are also awaiting insights from Fed Chair Jerome Powell’s upcoming press conference, especially regarding policymakers’ stance on Trump’s policies and potential responses if economic conditions deteriorate.
PTI
