Gold falls Rs 150 to Rs 81,150 per 10 gm; silver flat

Gold prices fell by Rs 150 to Rs 81,150 per 10 grams in the national capital on Wednesday in line with weak global trends, according to the All India Sarafa Association. Subdued demand from jewellers and retailers also impacted the prices, the association said.

However, silver remained flat at Rs 96,700 per kg. Gold of 99.5 per cent purity declined by Rs 150 to Rs 80,750 per 10 grams against the previous close of Rs 80,900 per 10 grams on Tuesday.

In the futures trade, gold contracts for December delivery fell by Rs 333 or 0.42 per cent to Rs 78,174 per 10 grams on the Multi Commodity Exchange (MCX). During the day, the yellow metal plunged Rs 1,007 or 1.3 per cent to hit a low of Rs 77,500 per 10 grams.

"Gold prices experienced intense volatility, fluctuating sharply between Rs 78,500 and Rs 77,500, as the US election outcome bolstered the dollar index. "This dollar strength pushed gold to lows of Rs 77,500 and $2,700 in dollar terms.

However, gold found some stability, recovering from oversold levels near $2,700 to around $2,725 per ounce," Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said.

Also, silver contracts for December delivery plunged Rs 1,122 or 1.19 per cent to Rs 93,526 per kg. The metal plummeted Rs 3,158 or 3.33 per cent to hit an intra-day low of Rs 91,490 per kg on the MCX.

In the global markets, Comex gold futures traded 0.57 per cent lower or $15.60 per ounce to $2,734.10 per ounce. "Gold prices are experiencing significant selling pressure in the European session on Wednesday, following a notable increase in the dollar index.

"Donald Trump has emerged victorious in the US presidential race and is poised to become the 47th president," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

The US Dollar (USD) is gaining due to the market view that Donald Trump's economic agenda and tariffs will strengthen the American currency. This, in turn, is negative for the precious metal since it is mainly priced and traded in USD.

Comex silver futures declined 1.10 per cent to $32.42 per ounce in the Asian market hours. "Gold and most other commodities are trading in the negative territory, weighed by a strong US dollar as Donald Trump leads the US Presidential race with a bigger margin," Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, said.

However, prices have recovered nearly 50 per cent of the losses on bargain buying around support levels and the focus now turns on the US Federal Reserve's monetary policy outcome on Thursday and other macroeconomic data which provide more insights on the direction of the bullion prices in the near future, Mer added.