New Delhi: Gold prices declined by Rs 700 to Rs 1,25,900 per 10 grams in the national capital Monday, tracking weak global trends as easing US-China trade tensions dented safe-haven demand.
According to the All India Sarafa Association, the yellow metal had climbed Rs 1,000 to Rs 1,26,600 per 10 grams Saturday.
Gold of 99.5 per cent purity also fell by Rs 700 to Rs 1,25,300 per 10 grams (inclusive of all taxes). It had settled at Rs 1,26,000 per 10 grams in the previous session.
“Gold resumed trading on a weaker note on Monday as signs of easing US-China trade tensions have increased investors’ interest in riskier assets, creating a negative impact on precious metals,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
In the local bullion market, silver prices slumped sharply by Rs 4,250 to Rs 1,51,250 per kg (inclusive of all taxes) Monday. The white metal had ended at Rs 1,55,500 per kg, up by Rs 2,900 Saturday.
On Sunday, top economic officials from Washington and Beijing agreed on the framework of a potential trade deal, which is expected to be discussed when US President Donald Trump meets his Chinese counterpart, Xi Jinping, in South Korea later this week.
In the overseas markets, spot gold extended the losses for the second straight day, by dropping USD 97.86, or 2.38 per cent to USD 4,015.55 per ounce.
Gandhi said investors continued to take profits and withdraw from gold-backed exchange-traded funds, adding further pressure on the bullion prices.
“We believe bullion will remain under selling pressure in the short term, and the downside will intensify once spot gold slips below the USD 4,000 per ounce level,” he noted.
Spot silver was quoted 2.03 per cent lower at USD 47.60 an ounce in overseas markets.
Investors are shifting their focus to central bank meetings later this week.
“The US Federal Reserve is largely anticipated to cut interest rates by 25 basis points after weaker than expected inflation data while the European Central Bank and Bank of Japan are expected to maintain current policy rates,” Renisha Chainani, Head – Research at Augmont, said.
PTI
