Gold, silver decline tracking weak global trends
Gold prices declined Rs 210 to Rs 51,963 per 10 gram in the national capital on Wednesday following a weak trend in the global market and rupee appreciation, according to HDFC Securities. The precious metal had closed at Rs 52,173 per 10 gram in the previous trade. Silver prices also tanked Rs 1,077 to Rs 65,178 per kg from Rs 66,255 per kg in the previous trade.
"Spot gold prices for 24 carat in Delhi continued to decline, losing Rs 210 with selling in global prices and rupee appreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
The rupee settled 3 paise higher at 74.30 (provisional) against the US dollar on Wednesday, supported by positive domestic equities and sustained foreign fund inflows.
In the international market, gold was trading lower at USD 1,918 per ounce, while silver was quoting flat at USD 26.45 per ounce.
"Gold prices continued downside on Wednesday on positive sentiment on vaccine hopes and easing US-China trade tensions," Patel said.
Motilal Oswal Financial Services, VP – Commodities Research, Navneet Damani said, "Gold prices continue to fall as hopes surrounding a potential COVID-19 vaccine and positive signals on the US-China trade front buoyed risk sentiment."
