Gold slumps Rs 700; silver plummets Rs 2,000

New Delhi, Sep 9 (PTI) Gold prices slumped Rs 700 to Rs 73,500 per 10 grams in the national capital on Monday amid a decline in precious metal rates in the global markets.

The yellow metal had closed at Rs 74,200 per 10 grams in the previous close on Friday.

Tracking gold, silver prices also plummeted Rs 2,000 to Rs 83,800 per kilogram on Monday on subdued offtake from industrial units and coin makers, according to the All India Sarafa Association.

In the previous session, the silver metal had finished at Rs 85,800 per kg.

Meanwhile, gold of 99.5 per cent purity also plunged Rs 500 to Rs 73,350 per 10 grams from Rs 73,850 in the previous close.

Domestically, traders attributed the decrease in prices of the yellow metal to lacklustre demand from local jewellers amid weak trend overseas.

Globally, Comex gold is trading at 0.07 per cent lower at USD 2,522.90 per ounce.

“Gold moved lower on Monday as mixed US jobs data increased doubts about the size of the Federal Reserve’s upcoming interest rate cuts,” Saumil Gandhi, Senior Analyst, Commodities, at HDFC Securities, said.

According to Manav Modi, Senior Analyst, Commodity Research, Motilal Oswal Financial Services, gold price eased towards the end of last week, retreating from a record level after a mixed jobs data and comments from a few Fed officials casting doubts on a interest rate cut in the next meeting.

Traders are awaiting this week’s US macroeconomic data reports, including inflation and producer price index (PPI) to gauge the Federal Reserve’s next move on the interest rates, Modi added.

However, silver prices are trading marginally higher at USD 28.44 per ounce in the international markets.

“Gold remains steady as traders await US inflation data this week amid recession concerns, despite Treasury Secretary Janet Yellen’s efforts to alleviate fears,” Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.

Yellen said there are no “red lights flashing” for the financial system, and reiterated her view that the US economy has reached a soft landing even as job growth weakens.

Maneesh Sharma, AVP of Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said major policy decisions by the US Federal Reserve next week will provide insights for the precious metal prices.