Gold Price Drops Rs 100, Silver Plunges Rs 600

New Delhi, Aug 29 (PTI) Gold prices slipped Rs 100 to Rs 74,250 per 10 grams in the national capital on Thursday, according to the All India Sarafa Association.

The precious metal had ended at Rs 74,350 per 10 grams in the previous trade.

Silver prices also plunged by Rs 600 to Rs 87,200 per kilogram, extending the losses in the second straight session on Thursday from the previous close of Rs 87,800 per kg.

Meanwhile, gold of 99.5 per cent purity also declined Rs 100 to Rs 73,900 per 10 grams on Thursday. It had settled at Rs 74,000 per 10 grams in the previous trade.

Traders attributed fall in the gold prices due to reduced demand by jewellers in the local markets.

On the global front, comex gold is trading at USD 2,555.10 per ounce, higher by USD 17.30 per ounce or 0.68 per cent.

"Gold prices rose on Thursday and traded within a range as traders remained cautious ahead of the release of key US macro data, including US unemployment claims and GDP data," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

This data could influence the US Federal Reserve's monetary policy and provide further direction for gold prices in the near future, Gandhi added.

According to Mohammed Imran – Research Analyst at Sharekhan by BNP Paribas, the gold has remained lacklustre this week as market awaits Personal Consumption Expenditures (PCE) data on Friday, which could be important to gauge the expectation of size of interest rate cuts from the US Fed.

Silver was also quoted higher at USD 29.97 per ounce in the international markets.

"Additionally, gold ETFs experienced net inflows valued at USD 403 million, mainly driven by North American funds," Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One, said.

China's net gold imports rose by 17 per cent in July, the first increase since March, suggesting stronger demand that could potentially support global prices, Mallya added.