Gold plunges Rs 1,450 to Rs 72,200, silver prices dive by Rs 2,300

NEW DELHI: Declining for the second day in a row, gold prices tumbled by Rs 1,450 to Rs 72,200 per 10 grams in the local market here due to profit-taking by traders and weak global trends.

Silver prices also tanked by Rs 2,300 per kg.

According to HDFC Securities, gold prices declined by Rs 1,450 to Rs 72,200 per 10 grams in Delhi. The precious metal had closed at Rs 73,650 per 10 grams in the previous session.

Silver prices nosedived by Rs 2,300 to Rs 83,500 per kg. In the previous close, it had ended at Rs 85,800 per kg.

"Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,200 per 10 grams, down by Rs 1,450 amid bearish cues from overseas markets," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the international markets, spot gold at Comex was trading at USD 2,310 per ounce, down USD 55 from the previous close.

Gold prices dipped further on Tuesday amid easing tension in the Middle East and signs that the US Federal Reserve will keep rates higher for longer, crimping demand.

Traders also shifted their money flow from safe haven to riskier assets, leading to profit-taking in the precious metals following the recent rally, Gandhi said.

Silver was also trading lower at USD 26.80 per ounce. In the previous session, it had ended at USD 27.95 per ounce.

"Gold prices continued their downward trend and the decline was attributed to a sharp drop in Comex Gold, within a span of two days.

"In the coming days, gold prices in MCX may find support near the Rs 70,000 mark. However, if prices fall below this level, another sell-off towards Rs 68,500 could occur, as risk sentiments of middle east cools off," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.

Meanwhile, in the futures trade on the MCX, gold tanked Rs 754 to trade at Rs 70,443 per 10 grams. The most traded June contract hit an intra-day low of Rs 70,202 per 10 grams.

Further, silver contracts for May delivery were also trading lower by Rs 728 or 0.9 per cent to Rs 79,851 per kg on the bourse.

"The market will be anticipating upcoming macroeconomic data on Manufacturing PMI and Services PMI from the US, UK, and Europe on Tuesday, while monitoring any developments on the geopolitical front," Chintan Mehta, Chief Executive Officer at Abans Holdings, said.