Silver prices declined Rs 1,800 to Rs 2.45 lakh per kilogram in the national capital on Monday, while gold fell to Rs 1.55 lakh per 10 grams amid weak global cues.
According to the All India Sarafa Association, the white metal decreased Rs 1,800, or nearly 1 per cent, to Rs 2,45,200 per kg (inclusive of all taxes) from Friday’s closing level of Rs 2,47,000 per kg.
Gold of 99.9 per cent purity also edged lower by Rs 300 to Rs 1,55,000 per 10 grams (inclusive of all taxes). The yellow metal had finished at Rs 1,55,300 per 10 grams in the previous market session.
“Precious metals opened lower on Monday after ceasefire talks between the US and Iran over the weekend failed to reach an agreement,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
He noted the setback in negotiations weighed on market sentiment and supported a rebound in the US dollar and Treasury yields, he added.
Bullion markets will remain closed on Tuesday on account of Dr Baba Saheb Ambedkar Jayanti.
In the international markets, precious metal prices also moved lower. Spot silver slipped USD 1.58, or 2.09 per cent, to USD 74.31 per ounce, while gold fell USD 25.92 to USD 4,722.26 per ounce.
Gold witnessed profit booking after reports that the US may consider troop deployment to secure the Strait of Hormuz and 100 per cent closure of the passageway, raising concerns of prolonged disruption and elevated crude prices, Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities, said.
The initial decline was followed by a recovery, with prices moving back above USD 4,700, as markets balanced escalation risks with possible de-escalation outcomes, he added.
“Volatility remains high as geopolitical uncertainty continues to dominate the sentiment,” Trivedi said.
