Gold Drops by Rs 50 to Rs 77,750 per 10 gm; Silver Rises by Rs 1,200

Gold prices declined by Rs 50 to a four-week low of Rs 77,750 per 10 grams in the national capital on Wednesday, following firm global trends, the All India Sarafa Association said.

On Tuesday, the yellow metal of 99.9 per cent purity had closed at Rs 77,800 per 10 grams.

Silver prices, however, rebounded from two consecutive falls with a gain of Rs 1,200 to Rs 92,500 per kg from the previous close of Rs 91,300 per kg.

Gold price of 99.5% purity slid by Rs 50 to Rs 77,350 for 10 grams. The yellow metal had closed lower at Rs 77,400 per kg on Tuesday.

Meanwhile, on the MCX, gold futures for December delivery rose by Rs 204, or 0.27 per cent at Rs 75,105 per 10 grams.

"Gold edged up slightly as investors looked at short-term support in the US CPI data to counter the overall weak trend," said Jateen Trivedi, VP Research Analyst-Commodity and Currency of LKP Securities.

That may keep the door open for further rate cuts by the Federal Reserve, which could continue to spur gold in the longer term, Trivedi added.

Silver futures for delivery in December gained by Rs 760, or 0.85 per cent, at Rs 90,087 per kg on the exchange.

Comex gold futures traded higher by USD 8 per ounce, or 0.31 per cent, at USD 2,614.30 an ounce.

Gold fell modestly on Wednesday and consolidated at the lower end of range. The dollar and Treasury yields also continued to rise again following the US election weighed upon precious metals, said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.

Investors are still debating the implications of Trump's win, especially after some of his top cabinet picks have taken a hardline approach to China, Kaynat Chainwala, AVP of Commodity Research, Kotak Securities said.
Global gold ETF outflows of about $809 million took place in the first week of November, following six months of inflows, a report from the World Gold Council reported.

Outflows from North American funds dominated in the overall outflows, but Asia saw strong demand, which helped somewhat, since it had been concerned over probable US-China trade tensions, said the report.

Silver traded 0.85 per cent higher at USD 31.02 an ounce during Asian market hours.

Gold prices were trading steady near two-month lows weighed by the stronger US dollar and higher treasury yields ahead of the US macroeconomic data to be released later, alongside the remarks from Federal Reserve Chair Jerome Powell and other central bank officials," said Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial.