Gold, silver prices slump in national capital on tepid demand, weak global trend

New Delhi, Nov 7: Gold and silver prices slumped in the national capital on Thursday, with the precious metal declining Rs 1,650 and slipping below the Rs 80,000

Gold and silver prices fell sharply in the national capital on Thursday, with the precious metal declining by a substantial Rs 1,650 and slipping below the key Rs 80,000-mark, as tepid demand from local jewellers amid a weak overseas trend played spoilsport, the All India Sarafa Association said.

Bullion prices had closed lower in the previous session also on weak demand and a fall in global prices.

The precious metal slipped by Rs 1,650 to Rs 79,500 per 10 grams as against the previous closing price of Rs 81,150 per 10 grams on Wednesday.

Tracking the footsteps of gold, silver also declined sharply by Rs 2,900 to Rs 93,800 per kg on reduced offtake by industrial units and coin makers as against the previous closing price of Rs 96,700 per kg on Wednesday.

Prices of gold of 99.5 per cent purity also fell by Rs 1,650 to Rs 79,100 per 10 grams as compared to the previous closing price of Rs 80,750 per 10 grams.

Bullion prices had closed lower in the previous session also on weak demand and a fall in global prices.

In the global market, gold prices on Thursday fell marginally as traders awaited the outcome of the Federal Reserve's (Fed) meeting later in the day, with expectations leaning toward a 0.25 per cent rate cut.

Spot gold was down 0.03 per cent at USD 2,674.31 per ounce by 0108 GMT. Prices hit a near two-week high of USD 2,682.86 in the previous session.

Comex gold futures fell USD 1.90 or 0.07 per cent to USD 2,674.40 per ounce in the Asian market hours.

“Gold traded in a flat to range-bound manner as market participants awaited the outcome of the Federal Reserve’s (Fed) meeting tonight, with expectations leaning toward a 0.25 per cent rate cut. However, silver contracts for December delivery fell by Rs 9, or 0.01 per cent, to trade at Rs 90,811 per kg,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.