NEW DELHI, Dec 18: Gold prices dropped by Rs 200 to reach Rs 79,100 per 10 grams in the national capital on Wednesday, in light of a strong trend in international markets, as reported by the All India Sarafa Association.
The metal, with 99.9% purity, had settled at Rs 79,300 per 10 grams in the previous session.
After three consecutive days of decline, silver rebounded by Rs 500, trading at Rs 92,000 per kg this Wednesday, having closed at Rs 91,500 per kg on Tuesday.
In the preceding three sessions, silver had experienced a significant drop of Rs 5,500 per kg.
The price of gold with 99.5% purity also fell by Rs 200, settling at Rs 78,700 per 10 grams, down from Rs 78,900 per gram on Tuesday.
Market analysts suggest that gold prices remain under pressure as stakeholders anticipate the outcome of the US Federal Reserve’s meeting, which may offer insights into future bullion price trends.
In futures trading on the MCX, February gold contracts rose by Rs 74, or 0.1%, trading at Rs 76,945 per 10 grams.
“Gold is maintaining a narrow trading range while the market awaits the Fed’s policy announcement tonight, with particular attention on the outlook for 2025 and issues regarding the job market,” said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities.
Currently, gold is trading near Rs 76,950 on the MCX. The forthcoming policy statement is anticipated to influence the subsequent movement of gold prices, Trivedi added.
Conversely, silver contracts for March delivery slipped by Rs 45, or 0.05%, and are now at Rs 90,830 per kg on the exchange.
During the Asian trading session, Comex gold futures increased slightly by 0.08%, trading at USD 2,664.10 per ounce.
Gold prices faced a decline on Wednesday, with the strengthening US dollar and unexpectedly high US retail sales data impacting bullion, noted Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Robust consumer spending, combined with the resilience of the US economy and favorable inflation indicators in recent months, suggests that the Fed might pause its rate-cutting strategy in the upcoming January meeting, which is bearish for precious metals, according to Gandhi.
In the global markets, silver remained steady at USD 30.92 per ounce.
“Gold and silver markets are under pressure due to a stronger US dollar, rising Treasury yields, mixed economic data from the US, and updates regarding ceasefires,” stated Manav Modi, Analyst from Commodity Research at Motilal Oswal Financial Services Ltd.
Traders are likely to pay attention to macroeconomic releases such as US housing data, GDP, and inflation, which may provide further clarity on gold and silver price movements, Modi added.
Traders are looking for indicators that could hint at the direction of the FOMC rate decision and will be keenly observing Fed Chair Jerome Powell’s commentary during the post-meeting press conference, along with the updated economic forecasts.
This information is expected to affect the US dollar and subsequently influence gold prices, they noted. (PTI)
