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Gold tumbles by Rs 317, silver declines to Rs 62,572

Gold tumbles by Rs 317, silver declines to Rs 62,572

09 Aug 2021

New Delhi: Gold in the national capital on Monday dipped Rs 317 to Rs 45,391 per 10 grams, in line with a fall in international precious metal prices, according to HDFC Securities. In the previous trade, gold closed at Rs 45,708 per 10 grams.

Silver also tumbled Rs 1,128 to Rs 62,572 per kg, from Rs 63,700 per kg in the previous trade.

In the international market, gold was trading lower at USD 1,749 per ounce and silver also dipped marginally to USD 23.91 per ounce.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “Gold prices extended decline following the sell-off occurred on Friday after stronger-than-expected US jobs market report.”

He added that the improved job numbers raised market expectations of sooner US Fed tapering despite of the US central bank’s cautious approach.

The dollar index rallied which dampened demand for precious metals, Patel said.

Navneet Damani, vice-president (commodities research) of Motilal Oswal Financial Services, said, “Gold extended its fall, along with silver, after a stronger-than-expected US jobs reported on Friday which fuelled the bets that the Fed may start paring back its massive monetary stimulus soon. The dollar and benchmark 10-year treasury yields jumped after the data, denting gold’s appeal.”

Market participants worry that the US economic recovery and rising inflation might spur the US Federal Reserve to pull back on unprecedented economic support, Damani added.