Gold Price Drops Rs 600, Silver Plunges Rs 1000

New Delhi, Jul 4 (PTI) Gold prices declined Rs 600 to Rs 99,020 per 10 grams in the national capital on Friday due to fresh selling by stockists, according to the All India Sarafa Association.

The yellow metal of 99.9 per cent purity had settled at Rs 99,620 per 10 grams on Thursday.

Gold of 99.5 per cent purity slipped Rs 500 to Rs 98,500 per 10 grams (inclusive of all taxes). It had closed at Rs 99,000 per 10 grams in the previous market close.

"Gold prices declined on Friday as the US dollar and treasury yields moved higher following stronger than expected US macroeconomic data.


"Furthermore, the macro data reduced the expectation of a interest rate cut by the US Federal Reserve, which also negatively impacted gold prices," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.

Silver prices also plunged Rs 1,000 to Rs 1,04,800 per kilogram (inclusive of all taxes) on Friday. It had finished at Rs 1,05,800 per kg in the previous market close.

Spot gold in the international markets went up marginally to USD 3,334.45 per ounce.

"Gold prices may see fresh movement ahead of the upcoming US Personal Consumption Expenditures Price (PCE) inflation report.

"A stronger than expected PCE data could revive inflation worries and lift safe-haven demand, while a softer print may boost hopes for interest rate cuts," Abans Financial Services' Chief Executive Officer Chintan Mehta said.