NEW DELHI, May 15: Gold prices plunged Rs 1,800 to Rs 95,050 per 10 grams in the national capital on Thursday amid a decline in precious metal rates in the overseas markets, according to the All India Sarafa Association.
The precious metal of 99.5 per cent purity slumped Rs 1,800 to Rs 94,600 per 10 grams (inclusive of all taxes).
Gold of 99.9 and 99.5 per cent purity had closed at Rs 96,850 and Rs 96,400 per 10 grams on Wednesday.
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“Gold prices are declining as investors move away from safe-haven assets. The recent agreement between the US and China to reduce tariffs for 90 days has eased fears of a full-scale trade war,” Abans Financial Services’ chief executive officer Chintan Mehta said.
As uncertainty fades, investors are shifting towards riskier assets, leading to a drop in short-term demand for gold, Mehta added.
Silver prices also continuing its losing streak for the fourth straight day, declining Rs 1,000 to Rs 97,000 per kg (inclusive of all taxes).
The white metal had settled at Rs 98,000 per kg in the previous market session.
According to Axis Securities, the decline in bullion prices was reinforced by the stabilisation of geopolitical risks, notably the easing of India-Pakistan tensions and growing optimism surrounding potential US sanctions relief on Syria.
Globally, spot gold fell USD 16.81, or 0.53 per cent, to USD 3,160.71 per ounce.
Gold prices declined in the wake of easing geo-political risk in the global market, Pranav Mer, Vice President, EBG of Commodity & Currency Research at JM Financial Services, said.
Investors will be focussing on Russia-Ukraine peace talks, US macroeconomic data such as producer inflation, jobless claims and US Federal Reserve Chair Jerome Powell’s speech later in the day, which could provide more impetus on the future trajectory for bullion prices, Mer added. (PTI)
