Gold prices fall to ₹1,31,530 per 10 gm amid weak global cues; silver rallies for sixth consecutive day

Gold rates (24K, 99.9% purity) in Delhi fell by ₹1,670 to ₹1,31,530 per 10 gram on Tuesday, December 2, amid weak trends in the international markets, according to the All India Sarafa Association. The precious metal soared ₹3,040 to ₹1,33,200 per 10 gram on Monday, trading near its lifetime high of ₹1,34,800 per 10 gram.

After a multi-week high was hit on Monday, many investors booked profits ahead of the US Federal Reserve meeting scheduled for December 9-10.

Silver prices, however, rallied for the sixth consecutive session, soaring ₹4,360 to ₹1,81,360 per kg after closing at ₹1,77,000 per kg on Monday. 

Domestic bullion prices are also rising due to a consistently weakening Indian rupee, which declined to a record low of 89.95 on Tuesday, against the US dollar, on trade deal uncertainty. 

International markets

In the international markets, spot gold fell by $45.17, or 1.07%, to $4,187 per ounce, while silver was trading 1.77% lower at $56.97 per ounce. In the previous session on Monday, spot silver touched a record high of $58.83 per ounce in the overseas trade due to supply concerns. 

“The anticipation that the incoming US Fed Chair may take a more dovish stance is helping to cap the downside for both gold and silver,” said Renisha Chainani, Head – Research at Augmont. 

On the market outlook, Chainani said silver historically delivers strong returns in December, citing gains of nearly 17% in 1997 as well as 2020.

"This seasonal tailwind may intensify the current price trend for December with targets of $60 (₹1,80,000 per kg) and $62 (₹1,86,000 per kg), assuming tight supply conditions persist," she said.

Futures on MCX

On the Multi Commodity Exchange, gold futures for the February expiry fell to an intraday low of ₹1,29,355 per 10 gram on Tuesday. At around 7:30 pm, the contracts were trading 0.3% lower at ₹1,30,200 per 10 gram.

Silver contracts for the March expiry also declined on Tuesday, falling to an intraday low of ₹1,77,372 per kg on the MCX. At around 7:30 pm, the contracts were trading 1.08% lower at ₹1,80,060 per kg.