Gold slumps Rs 350; silver remains flat

New Delhi, May 3 (PTI) Gold prices slumped by Rs 350 to Rs 72,000 per 10 grams in the national capital on Friday in line with weak trends globally, according to HDFC Securities.

In the previous session, the precious metal had finished at Rs 72,350 per 10 grams.

However, silver prices remained flat at Rs 83,500 per kg.

“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,000 per 10 grams, down by Rs 350 against the previous close,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

In the international markets, spot gold at Comex was trading at USD 2,297 per ounce, down by USD 7 from the previous close.

“Gold prices declined on Friday due to concerns that the US Federal Reserve may take longer to cut interest rates than previously anticipated as inflation risks persist.

“Additionally, the safe haven asset continues to erode after a possible ceasefire between Israel and Hamas,” Gandhi said.

However, silver was marginally up at USD 26.50 per ounce. It had closed at USD 26.45 per ounce in the previous session.

“On the data front, US consumer confidence was reported lower than expectations, while US weekly jobless claims and factory order were reported higher which weighed down on the bullion prices,” Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services, said.

According to Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial Services, gold prices are stuck in a range ahead of the US Nonfarm Payroll data due later on Friday, which will provide further direction for the gold prices.

“Although, the US labour market remains strong, the data is likely to support the US dollar and US Treasury yields, and may weigh on risk assets including gold,” Mer said.