New Delhi, May 11 (PTI) Gold prices fell Rs 600 to Rs 1.55 lakh per 10 grams in the national capital on Monday after US President Donald Trump rejected Tehran’s response to Washington’s peace proposal, raising fears of renewed conflict in West Asia and pushing crude oil rates higher.
Additional pressure came from Prime Minister Narendra Modi’s appeal to defer non-essential gold purchases for a year in an effort to protect the country’s external balances.
According to the All India Sarafa Association, gold of 99.9 per cent purity decreased by Rs 600 to Rs 1,55,300 per 10 grams (inclusive of all taxes) from Friday’s closing level of Rs 1,55,900 per 10 grams.
“Gold came under pressure on Monday as fresh setbacks in US-Iran negotiations renewed uncertainty across global markets,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
Rejection of the latest proposals sent by both sides reignited concerns over a prolonged conflict, pushing crude oil prices higher and reviving inflation worries, which strengthened expectations of tight monetary policy by global central banks, including the US Federal Reserve, he added.
However, silver prices climbed by Rs 3,700, or 1.42 per cent, to Rs 2,65,000 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,61,300 per kg in the previous session.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, said silver saw a slight uptick, benefiting from steady retail demand amid the approaching wedding season.
In the international markets, spot gold fell more than 1 per cent to USD 4,661.68 per ounce, and silver was also trading marginally lower at USD 80.28 per ounce.
“Gold traded slightly weak as markets reacted cautiously to negative developments around the US-Iran peace proposals, with reports suggesting renewed rejection of terms and rising fears of re-escalation in the conflict,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
The uncertainty has kept pressure on global risk sentiment, while rising crude prices are again adding inflation concerns across markets, he added.
