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The Indian precious metals market experienced mixed trends on Thursday, with gold prices remaining steady and silver prices experiencing a significant decline. According to the All India Sarafa Association, gold held its ground at Rs 82,400 per 10 grams, following a surge of Rs 1,000 on Wednesday that propelled it past the Rs 82,000 mark for the first time in Delhi. The 99.5 per cent purity gold also held its all-time high level at Rs 82,000 per 10 grams.
However, silver faced selling pressure and retreated below the Rs 1 lakh mark, plummeting by Rs 1,500 to Rs 99,500 per kg. This downward movement came after five consecutive days of gains, with silver closing at Rs 1.01 lakh per kg on Wednesday. The shift in sentiment suggests that investors may be taking profits following the recent rally.
In the futures market, gold contracts for December delivery on the Multi Commodity Exchange (MCX) experienced a decline of Rs 308, or 0.39 per cent, settling at Rs 79,428 per 10 grams. Meanwhile, silver contracts for December delivery plummeted by Rs 1,016, or 1.04 per cent, to Rs 96,724 per kg. This suggests that traders are cautious about the future trajectory of prices.
Analysts attributed the profit-taking in gold to anticipation of key economic events on Friday. The Non-Farm Payroll (NFP) and unemployment reports are expected to provide insights into the health of the US economy and could influence the US Federal Reserve's monetary policy decisions. The upcoming US election next week is also being closely watched by market participants, as it could potentially impact the gold market's direction.
Looking ahead, market participants are awaiting crucial US macroeconomic data, including inflation and Nonfarm payroll reports. These releases will provide a clearer picture of the pace of interest rate cuts by the US Federal Reserve. Recent data has indicated resilience in the US economy, fueling debate over the extent of interest rate cuts for the remainder of the year. The economic outlook in the United States will likely have a significant impact on gold's trajectory in the coming weeks.
Meanwhile, the festive season has been a boon for the Indian gold sector. Malabar Gold & Diamonds, a leading jeweler, reported a record turnover of Rs 3,484 crore during Diwali, representing a 30 per cent increase compared to last year. This growth reflects robust consumer sentiment and a two-day Dhanteras muhurat, which provided a wider window for buyers. Overall, the gold sector witnessed record-breaking sales during the festive period, with estimates suggesting transactions totaling up to 39 tonnes, or nearly Rs 19,500 crore. This surge was driven by favorable monsoon conditions, rising gold prices, and increasing consumer preference for gold as a safe haven asset.
Source: Gold trades flat at Rs 82,400 per 10 gm; silver plunges Rs 1,500