The 99.9 per cent pure precious metal fell from Rs 550 to Rs 78,950 per 10 grams. The closing price on Monday was Rs 79,350 per 10 grams.
Over the past year, gold prices have increased by Rs 15,030 or 23.5% to Rs 78,950 per 10 grams.
“In 2024, domestic gold prices rose over 20 per cent and spot gold rose around 26 per cent,” said Saumil Gandhi, senior analyst, commodities, HDFC Securities.
Mr. Gandhi emphasized that the rise in gold prices is driven by multiple factors, including global geopolitical and economic uncertainties, interest rate cuts by Western central bank authorities, and strong demand from central banks and wealthy individuals. .
Silver prices plunged by Rs 2,000 to Rs 89,700 per kg on Tuesday. The white metal closed at Rs 91,700 per kg in the previous trading session. Prices of 99.5 per cent purity fell by Rs 550 to Rs 78,400 per 10 grams compared to Monday’s previous closing price of Rs 78,950 per 10 grams. Meanwhile, in Multi Commodity Exchange (MCX) futures trading, the gold contract for February delivery rose by Rs 253 or 0.33 per cent to trade at Rs 76,513 per 10 grams.
“After the selling pressure observed on Monday, gold traded with a slight recovery. Prices rose to Rs 76,500 on MCX. The recent sell-off was mainly driven by the rise in the dollar index, with the dollar index at 108 The rally above the mark has created resistance for gold near Rs 77,000 on MCX.”
Jateen Trivedi, deputy research analyst, commodities and currencies, LKP Securities It’s limited,” he said.
Silver contracts for March delivery rose by Rs 169 or 0.19 per cent to Rs 87,700 per kg in futures trading at the stock exchanges on Tuesday.
Globally, Comex gold futures rose US$4.8 per ounce or 0.18% to US$2,622.90 per ounce.
Chintan Mehta, CEO of Avans Holdings, said recent hawkish signals have led traders to temper expectations for a Federal Reserve rate cut in 2025, leading to a weaker dollar index. The gold price is said to be stable as it continues to be strong.
However, Comex silver futures fell 0.16% during Asian market hours to $29.37 per ounce.
Mehta said the market will focus on US home price index data released later on Tuesday, while monitoring unemployment claims and manufacturing PMI later this week, which will determine the trajectory of gold bullion prices. He said he would provide further clues.
Participation in gold has declined due to the holiday season, but prices could rise as investors gradually increase their exposure. Traders expect gold prices to rise further, but a delay in further rate cuts could lead to short-term declines and create opportunities for accumulation, he added.
