Gold Price Drops Rs 1,200; Weak Global Trends

New Delhi, Jun 17 (PTI) Gold prices declined by Rs 1,200 to Rs 1,00,170 per 10 grams in the national capital on Tuesday due to continuous selling by jewellers and stockists in line with weak global trends, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had closed at Rs 1,01,370 per 10 grams in the previous market session.

Gold of 99.5 per cent purity dipped below the Rs 1 lakh mark, by falling Rs 1,100 to Rs 99,450 per 10 grams (inclusive of all taxes). It had settled at Rs 1,00,550 per 10 grams on Monday.

"Gold corrected further on Tuesday as traders reevaluated the likelihood of a full-scale regional war between Israel and Iran. This shift follows reports suggesting that Iran is actively pursuing a diplomatic resolution to its escalating conflict with Israel.

"The potential for a fragile truce has fostered a bearish sentiment among gold traders," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.


However, silver prices went up by Rs 100 to Rs 1,07,200 per kilogram (inclusive of all taxes) on Tuesday. The white metal had ended at Rs 1,07,100 per kg in the previous market close.

Globally, spot gold was trading lower at USD 3,380.65 per ounce.

"Gold is trading negative despite escalation of conflict in the Middle East and the precious metal witnessed profit taking at higher levels by the investors," Rahul Kalantri, Vice-President, Commodities at Mehta Equities, said.

Meanwhile, spot silver went up 0.44 per cent to USD 36.47 per ounce in the international markets.

Kalantri further said silver prices also came off day's high ahead of the US Federal Reserve's monetary policy meeting. However, global uncertainty and geopolitical tensions could support the prices of precious metals.

Abans Financial Services' Chief Executive Officer Chintan Mehta said, "On the economic front, investors will watch for US macro data, including May's retail sales and industrial production data later in the day to gauge the strength of the US economy".