Arizona Tribune - Delhi gold loses Rs 800 while silver falls Rs 5,000

NEW DELHI: Gold prices fell for the second straight session, declining Rs 800 to Rs 1.45 lakh per 10 grams in the national capital on Wednesday, as thin trading activity during the Diwali holiday weighed on the precious metal. The 99.9 per cent pure yellow metal depreciated Rs 800 to Rs 1,45,600 per 10 grams (inclusive of all taxes) from Tuesday's close of Rs 1,46,400 per 10 grams, according to local traders. Silver also joined the decline after holding steady for two sessions, with prices tumbling Rs 5,000 to Rs 1,87,500 per kilogram (inclusive of all taxes) from the previous close of Rs 1,92,500 per kg. "Gold prices declined on Wednesday, tracking weakness in subdued domestic trading activity amid the Diwali holiday period, which weighed on prices, with several local markets remaining closed," said Saumil Gandhi, Senior Analyst -- Commodities at HDFC Securities. The outlook for precious metals also remained clouded by persistent inflation and hawkish signals from the US Federal Reserve, which could keep the dollar and Treasury yields elevated, limiting gold's recovery prospects, Gandhi said. In global markets, spot gold traded marginally higher at USD 4,047.71 per ounce and silver rose almost 3 per cent to USD 52.86 per ounce. Spot gold was attempting to stabilise around USD 4,051 per ounce after the previous session's sharp sell-off, said Praveen Singh, Head of Commodities at Mirae Asset Sharekhan. Geopolitical developments also remained in focus, with hopes of a US-Iran peace deal gaining ground after President Donald Trump said the war involving Washington, Tel Aviv and Tehran was effectively over. However, Iran continues to press demands, including the unfreezing of its assets, removal of the naval blockade, lifting of sanctions and an end to hostilities on all fronts. Singh said crude oil prices, which have declined almost 25 per cent over the past 10 days, could remain volatile if peace talks fail to produce concrete progress. Gold is likely to retain a bearish near-term bias, with limited room for an upside, he added.

L.Adams--AT