Donald Trump’s tariff plans have increased global uncertainty. Also, the recent economic data from the US has reduced the possibility that the Federal Reserve will cut interest rates further. Due to this, investors remained indifferent towards gold and silver. Silver prices fell by Rs 4900 due to rampant selling by stockists and retailers.
Gold and silver prices are once again witnessing a decline. According to the All India Sarafa Association, the price of silver fell by Rs 4,900 in the national capital on Thursday due to rampant selling by stockists and retailers. It fell to a three-week low of Rs 90,900 per kg.
At the same time, gold fell by Rs 100 to Rs 78,700 per 10 grams. The yellow metal of 99.5 percent purity fell by Rs 400 to Rs 78,300 per 10 grams on Thursday. The price of gold of 99.9 percent and 99.5 percent purity closed at Rs 78,800 and Rs 78,700 per 10 grams respectively on Wednesday.
Silver also fell by Rs 4,900 to Rs 90,900 per kg due to weak demand from jewelers and coin makers. Earlier, silver had declined by Rs 4,600 on November 4. On Wednesday, silver witnessed its biggest single-day gain of Rs 5,200 and again touched Rs 95,000 per kg in the national capital after a gap of two weeks.
Traders say that US President-elect Donald Trump’s tariff plans have increased global uncertainty. Also, recent US economic data has reduced the possibility that the Federal Reserve will cut interest rates further. Due to this, investors’ attitude towards gold and silver remained indifferent.
Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said, “Gold prices witnessed a lot of volatility. It was weak in the beginning, but soon found support amid renewed geopolitical tensions between Russia and Ukraine. This encouraged safe investment. Trivedi said that gold prices will remain volatile depending on the movement of the dollar index and the geopolitical environment.
Silver futures contract for December delivery fell by Rs 115 or 0.13 per cent to Rs 87,565 per kg. In Asian market hours, Comex gold futures rose by $8.20 per ounce or 0.31 per cent to $2,673 per ounce.
“Gold prices are trading steady in a narrow range amid mixed data from the US, volatility in the dollar index, rising threat of trade tariffs and fluctuating market expectations about rate cuts,” said Manav Modi, commodity research analyst at Motilal Oswal Financial Services Ltd.
Continuous updates about the ceasefire agreement between Israel and Hezbollah and mixed comments from Fed officials did not allow gold prices to rise much. Meanwhile, in the international markets, Comex silver futures fell by 0.15 per cent to $30.51 per ounce.
According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, traders believe that gold prices are likely to remain stable in a narrow range, and trading volumes are expected to remain low due to Thanksgiving holiday in the US.