Gold falls Rs 110; silver plunges Rs 600

New Delhi, Jul 7 (PTI) Gold prices declined by Rs 110 to Rs 59,240 per 10 grams in the national capital on Friday amid weak global cues, according to HDFC Securities.

In the previous trade, the precious metal had ended at Rs 59,350 per 10 grams.

Silver also plunged by Rs 600 to Rs 71,500 per kilogramme.

“Gold edged lower on Friday, with spot gold prices in the Delhi markets trading at Rs 59,240/10 gram, down by Rs 110 per 10 gram,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

Gold prices have corrected following the release of stronger than anticipated US macro data, which reinforced expectations that the Federal Reserve will keep tightening the monetary policy, Gandhi said.

According to Jateen Trivedi, VP Research Analyst at LKP Securities, the current gold rate offers an opportunity for investors as the price of yellow metal is expected to rebound by Diwali.

“Considering the current price levels, gold offers a good opportunity for retailers and new investors. By the time of Diwali, it is expected that gold prices could reach around 61850-62500, which is close to the all-time high. In a bullish scenario, if the Fed’s stance shifts to a dovish outlook with hints of an interest rate cycle reversal, gold prices could potentially reach levels of 64500,” Trivedi said.

However, he said, “it’s important to monitor the Fed’s actions and any shifts in their stance, as well as keeping an eye on inflation data and its impact on interest rate decisions.”

In the overseas market, both gold and silver were trading lower at USD 1,915 per ounce and USD 22.70 per ounce, respectively.