New Delhi: Precious metal prices tumbled sharply in the national capital on Thursday, with silver slumping 10 per cent to Rs 2.68 lakh per kg, and gold falling to Rs 1.6 lakh per 10 grams triggered by a global selloff and a firm US dollar.
According to the All India Sarafa Association, silver nosedived by Rs 30,300, or 10.16 per cent, to Rs 2,68,000 per kilogram (inclusive of all taxes), compared with Wednesday’s closing level of Rs 2,98,300 per kg.
Gold of 99.9 per cent purity also depreciated by Rs 4,500, or nearly 3 per cent, to Rs 1,60,600 per 10 grams (inclusive of all taxes). It had settled at Rs 1,65,100 per 10 grams in the previous session.
“Gold and silver moved lower on Thursday, snapping a two-day rally, as precious metals faced renewed selling pressure and heightened volatility.
“The pullback coincided with a stronger US dollar, hawkish remarks from Federal Reserve official, and a moderation in safe-haven demand,” Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.
Meanwhile, bullion prices also witnessed a steep fall with silver and gold diving up to 13 per cent in the international markets.
Spot silver tanked USD 11.94, or 13.54 per cent, to USD 76.26 per ounce, while gold declined by USD 137.32, or 2.77 per cent, to USD 4,826.99 per ounce.
The dollar index, which measures the greenback’s performance against a basket of six major currencies, was up 0.25 per cent at 97.86, weighing heavily on commodities denominated in the US currency.
“Spot gold tumbled on Thursday as the US dollar strengthened and caution prevails ahead of the US-Iran talks in Oman tomorrow,” Praveen Singh, Head of commodities, Mirae Asset Sharekhan, said.
Manav Modi, Analyst, Commodities at Motilal Oswal Financial Services Ltd, said silver prices languished once again after recovering from last week’s fall.
He added that silver’s rout deepened following a selloff in China, where Shanghai silver futures fell as much as 15 per cent during the session. A major Chinese silver futures fund UBS SIDC hit its daily loss limit of 10 per cent for the 4th consecutive day, prompting panic selling and forced liquidations.
“As China sold aggressively, global markets reacted,” Modi said.
