Gold Price Tumbles Rs 1,150 to Rs 88,200, Silver Plunges Amid Weak Global Cues

New Delhi, Feb 27 (PTI) Gold prices tumbled by Rs 1,150 to Rs 88,200 per 10 grams in the national capital on Thursday, tracking a bearish trend in global markets, according to the All India Sarafa Association.

Gold of 99.5 per cent purity also slumped by Rs 1,150 to Rs 87,800 per 10 grams from the previous close of Rs 88,950 per 10 grams.

Silver prices tanked by Rs 1,000 to Rs 98,500 per kg from the last close of Rs 99,500 per kg. Bullion markets were closed on Wednesday for Mahashivratri.

Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for April delivery declined Rs 554 to Rs 85,320 per 10 grams.

"Gold prices traded weak as a sell-off was witnessed in MCX, where gold saw a decline touching Rs 85,000. Further weakness may emerge if MCX gold breaches Rs 84,800," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Market participants will closely watch the Core PCE (Personal Consumption Expenditures) Price Index data on Friday for further cues, Trivedi added.

In the overseas markets, Comex gold futures for April delivery fell by USD 23.10 per ounce or 0.79 per cent to USD 2,907.50 per ounce. Also, spot gold slipped below the USD 2,900-mark as the yellow metal prices declined to USD 2,892.95 per ounce.

"Gold prices corrected after surging to yet another record high as the dollar edges higher on tariff concerns, but safe-haven demand remains strong as Trump in his latest speech announced a 25 per cent tariff on imports from the European Union and stated that tariffs on Mexico and Canada would now take effect on April 2 instead of the earlier March 4 deadline," Abans Holdings' Chief Executive Officer Chintan Mehta said.

Further, Mehta stated that markets have become uncertain as the likelihood of tariffs being implemented on Mexico and Canada remains unclear, driving continued demand for gold.

Silver futures in the Asian market hours also quoted 0.34 per cent lower at USD 32.47 per ounce.

According to HDFC Securities' Senior Analyst of Commodities Saumil Gandhi, investors are looking ahead to key US macroeconomic data such as weekly jobless claims, January durable goods orders, and preliminary Q4 GDP.

Speeches from some of the US Federal Reserve members may impact bullion prices and US dollar trends later on Thursday, Gandhi said.