Gold Price Drops Rs 200, Silver Surges Rs 800 - HDFC Securities

New Delhi, May 14 (PTI) Extending the losses for the second day in a row, gold price declined Rs 200 to Rs 72,950 per 10 grams in the national capital on Tuesday amid a fall in precious metal rates globally, according to HDFC Securities.

In the previous session, the yellow metal had closed at Rs 73,150 per 10 grams.

However, silver surged Rs 800 to reach Rs 86,000 mark. It had ended at Rs 85,200 per kg in the previous trade.

"Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,950 per 10 grams, down by Rs 200 against the previous close," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the overseas markets, spot gold at Comex was trading at USD 2,339 per ounce, down by USD 8 from the previous close.

Gold price fell further on Tuesday as traders weighed a probable downturn in the US economy against continued inflationary pressures that might hamper the US Federal Reserve's plans to reduce interest rates this year, Gandhi added.

However, silver was quoted higher at USD 28.35 per ounce. It had settled at USD 28.10 per ounce in the previous session.

"Gold prices are stuck in a range after yesterday's 1.3 per cent dip, with focus on the US inflation data and US Fed chair's speech, both of which will be closely watched by traders for clues on any rate cuts going ahead.

"However, silver prices have continued to trade positive, following cues for a rally in the industrial metals," Pranav Mer, Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd, said.