Gold prices maintained their slight downward trend on Saturday, following weaker international cues and a conservative investor mood. The price of 24-carat gold dropped by Rs. 10, trading at Rs. 1,24,360 per ten grams, according to figures available on Business Standard. Likewise, 22-carat gold dropped by Rs. 10 to trade at Rs 1,13,990 per ten grams.
The fall occurs amid profit-taking by traders following recent peaks and lackluster retail demand ahead of the festive season. Analysts indicate that although long-term fundamentals are good, short-term volatility is expected until more clarity emerges from the US Federal Reserve's policy meeting next week.
Gold prices were largely unchanged in major metros. In Mumbai, Kolkata, and Chennai, 24-carat gold was priced at Rs. 1,24,360 per 10 grams, while Delhi posted a slightly higher price of Rs. 1,24,510.
The price of 22-carat gold was at Rs. 1,13,990 in Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai, and at Rs. 1,14,140 in Delhi. The uniformity across cities reflects a calm domestic trend, even with overseas uncertainty.
Silver prices also fell on Saturday, dropping Rs. 100 to Rs. 1,54,900 per kilogram in Delhi, Mumbai, and Kolkata. In Chennai, silver traded higher at Rs. 1,69,900 per kilogram, showing regional differences in demand and logistics.
Market analysts blame the decline on revisions to muted industrial buying and a halt to speculative positions after recent rallies. “The silver market is drawing its cues from global inflation statistics as well as weakening industrial sentiment,” a Mumbai-based bullion dealer said.
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Internationally, gold prices leveled out after a tumultuous week. Spot gold was unchanged at $4,125.11 an ounce at 12:05 pm ET, having previously dropped almost 2 percent. US December gold futures were 0.1 per cent lower at $4,143.20 an ounce.
The modest rebound came after the softer-than-forecast US inflation, which supported hopes for a Federal Reserve interest rate cut next week. Still, bullion is up 55 per cent so far this year, underpinned by central bank buying, geopolitical concerns, and continuous investor flows.
Platinum fell 0.6 per cent to $1,616.46, and palladium rose 0.2 per cent to $1,459.25.