NEW DELHI, Feb 21: Gold prices fell from their all-time high in the national capital on Friday, decreasing by Rs 700 to Rs 88,750 per 10 grams due to sluggish demand from jewelers and stockists, as reported by the All India Sarafa Association.
The fine gold (99.9% purity) reached a peak of Rs 89,450 per 10 grams on Thursday.
Taking a step back, gold with 99.5% purity dropped by Rs 700 to Rs 88,350 per 10 grams as demand from jewelers waned, according to traders. They noted that weak global trends contributed to the decrease.
Silver prices also declined by Rs 300, reaching Rs 1 lakh per kg in the local market.
In futures trading, gold contracts for April delivery fell by Rs 225 to Rs 85,799 per 10 grams on MCX.
“Gold saw weak trading and remained volatile. In MCX, gold fluctuated between Rs 85,900 and Rs 85,400, with the weakened rupee helping prices stay above Rs 85,350 despite a flat dollar index,” stated Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
Trivedi further noted that market participants are anticipating upcoming data on manufacturing, services, and existing home sales, which could contribute to gold’s volatility in the evening session.
Silver futures for March delivery also decreased by Rs 283 to Rs 96,830 per kg on the Multi Commodity Exchange (MCX).
Meanwhile, Comex gold futures for April delivery fell from their peak, dropping USD 11.19 to USD 2,944.91 per ounce.
Spot gold also retreated, down USD 8.42 or 0.29% to USD 2,930.56 per ounce.
“Gold prices declined from record highs on Friday as traders liquidated their long positions and took profits after an extended rally in precious metals,” commented Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Additionally, hawkish remarks from several Fed members and the FOMC meeting minutes reinforced the cautious approach of US policymakers regarding interest rate cuts amidst ongoing inflation, prompting some profit-taking in gold, Gandhi added.
Comex silver futures during Asian market hours traded lower at USD 33.65 per ounce.
Experts suggest that bullion prices decreased amid reports indicating that discussions regarding the war in Ukraine may include easing sanctions against Russia, as President Trump is pushing for a swift resolution to the conflict. (PTI)
