Gold prices fell by Rs 400 in Delhi’s bullion market on Thursday due to weak global cues and diminishing expectations of interest rate cut by the US Federal Reserve. Now gold of 99.9 percent purity reached Rs 1,60,900 per 10 grams (including all taxes). According to All India Bullion Association, gold had closed at Rs 1,61,300 per 10 grams on Wednesday, from where today a decrease of 0.25 percent i.e. Rs 400 was recorded.
What changed in the price of silver?
Here, the price of silver remained unchanged in the local market and remains at Rs 2,68,500 per kg (including all taxes). Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said strong US labor market data has reduced the chances of aggressive rate cuts by the Fed. Due to this, a slight decline was seen in gold in a limited range. US non-farm payrolls data for January showed 1.3 million new jobs were added, while the unemployment rate fell to 4.3 percent, indicating a strong jobs market. Gandhi further said that although expectations of a rate cut in the near term have diminished, this policy is likely to continue in the long term.
Spot gold in global market
Globally, spot gold fell by $ 22.07, or 0.43 percent, to $ 5,062.46 an ounce. Silver saw a fall of about 2 percent and was trading at $ 82.84 an ounce. Spot gold remained weak around $5,070 an ounce after strong US employment data, according to a Kotak Securities report. Silver first fell to $81.6, then jumped and reached near $83. Silver has seen huge volatility in recent days and is down by almost one-third from the record high reached on January 29. Low liquidity and aggressive positioning are the main reasons for this.
Keep an eye on these figures
The brokerage firm said the delay in monetary easing may limit near-term upside in non-interest bearing assets like gold. Nevertheless, geopolitical risks, continued buying by central banks and currency devaluation concerns are providing strong support to bullion. Now the market is eyeing the US unemployment claims data and consumer price index data to be released on Friday, which will play an important role in deciding the Fed’s further policy direction.
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