Taking a breather, gold of 99.5 per cent purity depreciated by Rs 700 to Rs 88,350 per 10 grams due to poor demand from jewellers, traders said. Weak global trends aided losses, they added.
Silver prices also slipped by Rs 300 to Rs 1 lakh per kg in the local market.
In futures trade, gold contracts for April delivery decreased by Rs 225 to Rs 85,799 per 10 grams on MCX.
“Gold traded weak and remained volatile. In MCX, gold moved between Rs 85,900 and Rs 85,400, with rupee weakness supporting prices above Rs 85,350 despite a flat dollar index,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Further, Trivedi highlighted that market participants will focus on upcoming manufacturing, services, and existing home sales data, which may add to gold’s volatility in the evening session. Silver futures for March delivery went lower by Rs 283 to Rs 96,830 per kg on the Multi Commodity Exchange (MCX). Meanwhile, Comex gold futures for April delivery retreated from all-time peak by declining USD 11.19 to USD 2,944.91 per ounce.
Spot gold too slipped USD 8.42 or 0.29 per cent to USD 2,930.56 per ounce.
“Gold prices fell from record highs on Friday as traders liquidated their long bets and took profits after a prolonged rally in precious metals,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Further, hawkish statements from several Fed members, as well as the FOMC meeting minutes, reinforced US policymakers’ cautious stance on interest rate cuts in the face of persistent inflation, which have led to some profit-taking in gold, Gandhi added.
Comex silver futures in the Asian market hours traded lower at USD 33.65 per ounce.
According to experts, bullion prices slipped amid reports that the Trump administration indicated that easing sanctions against Russia might be discussed in negotiations regarding the war in Ukraine, as President Trump is seeking a swift resolution to the conflict.
