Gold prices almost flat at Rs 79,700 per 10 grams; Silver slips Rs 230

Gold prices remained nearly unchanged at Rs 79,700 per 10 grams in the national capital on Friday, according to the All India Sarafa Association. The yellow metal had closed slightly higher at Rs 79,720 per 10 grams on Thursday.

Silver, however, dropped Rs 230 to Rs 90,400 per kilogram on Friday, compared to its previous close of Rs 90,630 per kilogram. Meanwhile, gold with 99.5% purity saw a rise of Rs 130, settling at Rs 79,300 per 10 grams.

In the futures market, gold contracts for February delivery on the Multi Commodity Exchange (MCX) edged up Rs 6 to trade at Rs 77,723 per 10 grams. According to Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, gold traded with minor gains domestically, while Comex gold exhibited a sideways trend around USD 2,655 per ounce. Trivedi noted that the market remained steady with minimal movements as investors awaited global cues for direction.

Silver in the futures market on the MCX climbed Rs 517 or 0.58%, trading at Rs 89,690 per kilogram. Globally, Comex gold futures increased by USD 2.10 per ounce or 0.08%, reaching USD 2,671.10 per ounce.

“Gold extended its gains on Friday, driven by safe-haven demand following reports that US President Joe Biden discussed contingency plans to strike Iran’s nuclear facilities if progress towards a nuclear bomb was detected before Donald Trump’s inauguration on January 20,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.

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Comex silver futures also gained, rising 1.05% during Asian market hours to trade at USD 30.22 per ounce. Manav Modi, Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, highlighted that geopolitical tensions are increasingly causing market distress, supporting both gold and the dollar.

Modi added that attention is now focused on the US manufacturing PMI data due later on Friday, which could offer further insights into the direction of bullion prices.

(With inputs from PTI)