Gold and silver prices today tumbled after they hit record highs recently. In spot markets, gold prices today slumped ₹425 to ₹37,945 per 10 gram in Delhi markets, Press Trust of India reported, citing All India Sarafa Association. Silver rates tumbled ₹690 to ₹44,310 per kilogram. In Delhi, gold of 99.9% and 99.5% purity today declined by ₹425 each to ₹37,945 and ₹37,775 per 10 gram, respectively. Silver ready today plunged ₹690 to ₹44,310 per kilogram, while weekly-based delivery price plummeted by ₹1,050 at ₹43,230 per kg.
On MCX, October gold futures were flat at ₹37,779 per 10 grams but sharply off record highs of ₹38,666, hit on Tuesday. Similarly, silver contracts on MCX were steady at ₹43,146 per kg, significantly off recent highs of ₹44,584.
In global markets, gold prices slumped 2% on Tuesday, reversing earlier gains, after the US said it would delay tariffs on some Chinese products and on news that both sides agreed to continue trade talks. Silver rates also fell sharply.
In global markets, gold prices had hit over six-year highs on Tuesday, triggered by a rout in the Argentine peso and protesters clashing with police at the Hong Kong international airport after flights were disrupted for a second day. But they fell sharply after the Trump administration on Tuesday said it will delay 10% tariffs on certain Chinese products, including laptops and cell phones, that had been scheduled to start next month, slightly easing trade tensions between world's two biggest economies. The reprieve in trade dispute between the world's biggest economies boosted investor sentiment towards riskier assets like equities.
Gold traders will be watching next week's US Federal Reserve's annual symposium for clues on the future trajectory of interest rates. Most traders expect another 25 basis-point rate cut by the US central bank this September. Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding asset classes like gold.
In global markets, gold prices were however steady today at around $1,500 an ounce, after Tuesday's sharp fall, buoyed by uncertainty around political risks such as the unrest in Hong Kong amid global growth concerns. day sales.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 1.31% to 836.66 tonnes on Tuesday from 847.77 tonnes on Monday.
Back in India, the rupee which hit a six-month low on Tuesday, strengthened today. A weaker rupee increases the landed cost of gold. (With Agency Inputs)