The newly elected US President Donald Trump has threatened to impose additional duty on imports from China, Mexico and Canada. This attracted investors towards the US currency i.e. dollar. At the same time, the reduction in geopolitical tensions in the Middle East also led to a decline in the demand for gold which is considered the safest investment. Let us know the latest prices of both metals.
Gold lost its shine due to the strengthening of the dollar in global markets. Due to this, gold prices fell sharply for the second consecutive session in the national capital on Tuesday. It fell by Rs 1,250 to Rs 78,150 per 10 grams. According to the All India Sarafa Association, this precious metal of 99.9 percent purity closed at Rs 79,400 per 10 grams on Monday with a decline of Rs 1,000.
Silver also fell by Rs 1,100 to Rs 90,600 per kg on Tuesday. In the previous session, it closed at Rs 91,700 per kg with a decline of Rs 1,600.
Gold slipped due to Trump
Analysts say that the newly elected President of America, Donald Trump, has threatened to impose additional duty on imports from China, Mexico and Canada. Due to this, investors were attracted to the US currency i.e. dollar. At the same time, the softening of geopolitical situation in the Middle East reduced the safe investment appeal of gold.
Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities, said, “Gold remained volatile and traded in the range of Rs 74,850-75,500 on MCX as easing tensions in the Middle East led to a decline in demand for gold.” Trivedi said bullion is expected to remain volatile as market participants assess global developments.
Investors eye US
Meanwhile, silver contracts for December delivery rose by Rs 698 or 0.8 per cent to Rs 88,397 per kg as against the previous close of Rs 87,699 per kg. Globally, Comex gold futures rose by $ 13.40 per ounce or 0.51 per cent to $ 2,656 per ounce. On Monday, the price of the precious metal fell by $ 100.80 per ounce or 3.71 per cent to $ 2,615.10 per ounce.
Silver also rose 0.94 per cent to $ 30.95 per ounce in the Asian market. According to Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services, traders will be eyeing the details of the Federal Reserve’s November meeting, US GDP revision and core personal consumption expenditure (PCE) price index data, which are expected to give information about the US central bank’s policy outlook.