Gold.
Credit: PTI Photo
New Delhi: Gold prices declined by Rs 700 to Rs 1,25,400 per 10 grams in the national capital on Monday amid appreciation in the rupee, and weak global trends, according to marketmen.
Extending losses for the third straight session, the precious metal of 99.5 per cent purity dropped by Rs 700 to Rs 1,24,800 per 10 grams (inclusive of all taxes).
Silver too faced selling pressure for the third consecutive day, plunging by Rs 1,000 to Rs 1,55,000 per kilogram (inclusive of all taxes).
On Monday, the rupee rebounded sharply by 50 paise to settle at 89.16 against the greenback, due to US dollar selling by banks and importers amid a dip in global crude oil prices.
"Gold prices opened weak, as a stronger rupee and softness in the international markets, pressured domestic prices," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
Echoing similar views, Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said, gold has exhibited slightly higher volatility compared to global benchmarks due to sharp fluctuations in the rupee.
In the international markets, spot gold was trading marginally lower at USD 4,064.35 per ounce, while silver quoted 0.12 per cent higher at USD 50.09 per ounce.
"Spot gold eased to USD 4,060 per ounce as traders cautiously await a series of US economic releases, with any upside surprises likely to shift expectations back toward no rate cut," Kaynat Chainwala, Analyst Commodities & Currency, Kotak Securities, said.
Renisha Chainani, Head - Research at Augmont, said mixed US jobs data and uncertainty surrounding the Federal Reserve's next policy move have led to range-bound trading in bullion, but with a bearish bias.
Bullion holdings in the People's Bank of China (PBoC) reserves climbed to 74.09 million troy ounces in October, marking the 12th consecutive month of accumulation, signalling strong central bank demand.
According to World Gold Council, global central banks bought 220 MT of gold in Q3, up 28 per cent from Q2.
Meanwhile, New York Fed President John Williams indicated that interest rates may still be lowered in the near term, increasing the likelihood of a possible move in December.
"Investors are now looking ahead to key US macroeconomic data this week, including retail sales, producer inflation and jobless claims, for further guidance," Chainani said.