SRINAGAR: Gold prices fell sharply by Rs 1,500 to Rs 1,29,400 per 10 grams in the national capital on Friday, mirroring a decline in global markets after US Federal Reserve officials signalled that a shortage of fresh economic data may postpone further interest rate cuts.
According to the All India Sarafa Association, gold of 99.5 per cent purity dropped to Rs 1,28,800 per 10 grams (including all taxes), down from Thursday’s close of Rs 1,30,300. In the previous session, 99.9 per cent pure gold had settled at Rs 1,30,900 per 10 grams.
“Gold eased towards the end of the week as uncertainty grew over the Federal Reserve’s next rate cut,” said Saumil Gandhi, Senior Analyst-Commodities at HDFC Securities. He added that more Fed officials have adopted a cautious stance due to the absence of updated economic data, a consequence of delays caused by the government shutdown since October 1.
Silver prices also saw a steep decline, plunging by Rs 4,200 to Rs 1,64,800 per kilogram (inclusive of taxes), compared with Thursday’s closing price of Rs 1,69,000 per kg.
In international markets, spot gold slipped by USD 33.58, nearly 1 per cent, to USD 4,137.88 an ounce, while spot silver was down 0.49 per cent at USD 52.03 per ounce.
“Gold remained under pressure as remarks from Federal Reserve officials—indicating that limited economic data could push back rate cuts—dampened bullion sentiment. A stronger dollar index further weighed on prices,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
