New Delhi, Apr 23 (PTI) Gold prices took a U-turn from the historic Rs 1 lakh-mark and declined Rs 2,400 to Rs 99,200 per 10 gram in the national capital on Wednesday amid weak global trend.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity spurted by Rs 1,800 to hit the lifetime peak of Rs 1,01,600 per 10 grams on Tuesday.
Gold of 99.5 per cent fall sharply by Rs 3,400 to Rs 98,700 per 10 grams on Wednesday, a day after jumping Rs 2,800 to an all-time high of Rs 1,02,100 per 10 grams in the local markets.
“Gold prices corrected after reaching record highs, as safe-haven demand softened following President Donald Trump’s comments that the steep tariffs on Chinese goods imposed during the trade war escalation will soon be substantially reduced,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said.
Meanwhile, silver prices jumped Rs 700 to Rs 99,200 per kg on Wednesday. The white metal had closed flat at Rs 98,500 per kg in the previous session.
On the Multi Commodity Exchange (MCX), gold futures for June delivery dipped Rs 1,435 or 1.47 per cent to Rs 95,905 per 10 grams. It rose to touch a record high of Rs 99,358 per 10 grams in the previous market close.
In addition, the price of August contract depreciated by Rs 1,330 or 1.36 per cent to Rs 96,669 per 10 grams against the previous close of Rs 1,00,000 per 10 grams, also its historic high on the MCX.
“Gold prices witnessed sharp weakness. This marks a steep sell-off since April 3, signalling a possible short-term reversal from recent peaks,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
As tariff concerns ease, gold is seeing some premium unwinding. Looking ahead, gold is expected to trade in a broad range between Rs 94,000–98,000 per 10 grams, with elevated volatility likely to persist, Trivedi added.
In the global markets, spot gold retreated from the record level to trade at USD 3,330.99 per ounce, down by USD 50.37 or 1.49 per cent. On Tuesday, the spot gold rose to hit a fresh high of USD 3,500.33 per ounce.
“…Gold extended its decline on Wednesday, dropping to USD 3,316 per ounce, as Trump clarified he would not fire Fed Chair Powell, which helped restore confidence in the Fed’s independence and further eased investor anxiety,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
Spot silver in the Asian market hours rose 1.19 per cent to USD 32.90 per ounce.
According to HDFC Securities’ Senior Analyst of Commodities Saumil Gandhi, traders are now looking forward towards the release of macroeconomic data, such as global flash PMIs and US new home sales to be released later on Wednesday.
Infinity Money’s Founder Vinayak Mehta said the international market of the precious metal has always been a lucrative asset class during testing times.
As US puts trade sanctions on different countries, the central bank and hedge funds are moving towards safe heaven…thereafter, the gold prices on Wednesday have touched a high of USD 3,500 per ounce.
“We don’t see a sign of correction yet till the trade war situation normalises,” Mehta said.
