New Delhi: Gold prices declined Rs 250 to Rs 74,350 per 10 grams in the national capital on Thursday, while silver rates surged to reclaim the 87,000 level, according to All India Sarafa Association.
On Wednesday, the precious metal or pure gold (99.9 per cent purity) ended at Rs 74,600 per 10 grams.
However, silver price rallied Rs 2,000 to touch a two-week high of Rs 87,000 per kilogram on Thursday.
The silver metal had finished at Rs 85,000 per kg in the previous session.
In the past three sessions, the withe metal has surged Rs 3,200 per kg.
Meanwhile, gold of 99.5 per cent purity also declined by Rs 250 to Rs 74,000 per 10 grams from the previous close of Rs 74,250 per 10 grams.
Traders said the silver continued its strong trend for the third-straight session owing to strong industrial offtake leading to a jump in the prices of the metal.
In the international markets, Comex gold was trading 0.21 per cent higher at USD 2,547.70 per ounce.
“Comex gold surged to a weekly high of USD 2,558 per ounce but retreated following the release of the inflation report, as market sentiment adjusted to the likelihood of a small interest rate cut by the US Federal Reserve,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
Silver also quoted higher at USD 29.16 per ounce in the global markets.
“Traders will closely monitor the US data macroeconomic data such as producer price index (August) and jobless claims,” Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said.
Further, this data could impact expectations regarding the trajectory of US interest rates, which in turn will impact bullion prices and the US Dollar (USD).
Additionally, the European Central Bank (ECB) meeting on Thursday could further impact the precious metal’s price, depending on how much easing the ECB will decide to implement, Singh added.
“US Treasury yields pushed higher, while the dollar pared early losses which weighed down on gold prices.
“Traders have almost eliminated bets on the interest rates cut by the US central bank this month,” Saumil Gandhi, Senior Analyst – Commodities, HDFC Securities, said.
As per Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers, the gold is expected to continue to remain volatile at higher levels while consolidating above USD 2,500 per ounce in the international markets.
