Gold slips below Rs 79,000 per 10 gm on reduced demand, global cues

New Delhi: Gold prices slipped below Rs 79,000 per 10 kg in the national capital on Wednesday due to poor offtake by stockists and retailers amid weak global trends, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity fell by Rs 150 to Rs 78,850 per 10 grams. It had closed at Rs 79,000 per 10 grams in the previous session.

Price of gold of 99.5 per cent purity extended the losses for the third straight day, declining by Rs 150 to Rs 78,450 per 10 grams from the previous close of Rs 78,600 per 10 grams.

However, silver rose Rs 100 to Rs 92,500 per kg. On Tuesday, the white metal had settled at Rs 92,400 per kg.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery fell Rs 93 or 0.12 per cent to trade at Rs 76,810 per 10 grams.

Silver contracts for March delivery declined Rs 322 or 0.35 per cent to Rs 91,875 per kg on the bourse.

Comex gold futures in the Asian market hours edged lower by USD 4.90 per ounce or 0.18 per cent to USD 2,663 per ounce.

"Gold held steady on Wednesday as traders continued to assess the recent political developments and monetary outlook while awaiting key US economic data releases in the week ahead," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

According to Manav Modi, Analyst, Commodity Research, Motilal Oswal Financial Services Ltd, gold prices traded steady after inching higher in Tuesday's session, on one end, strong US jobs data hinted at a cautious approach to rate cuts, while a softer dollar and easing Treasury yields capped losses as markets awaited further economic cues.

Along with geo-political tensions in the Middle East, disturbance in South Korea also led to some safe-haven buying, Modi said.

Silver also traded 0.17 per cent lower at USD 31.33 per ounce in the global markets.

"The metal remained supported by its safe-haven appeal amid political uncertainties in South Korea and France and ongoing geopolitical tensions in the Middle East and the Russo-Ukrainian war," Deveya Gaglani, Senior Research Analyst of Commodities at Axis Securities.

The US Federal Reserve (Fed) Chair Jerome Powell will deliver his final publicly scheduled comments later on Wednesday on the state of the economy before the central bank's last rate-setting meeting this year.

The commentary by the Fed Chair will give investors another look at his views before a quiet period ahead of the Federal Open Market Committee's monetary policy meeting scheduled to be held on December 17-18.