Gold declines Rs 600 to Rs 99,960 per 10 g; silver plunges Rs 2,000 per kg

New Delhi, June 20: Gold prices slipped below the Rs 1 lakh-mark, falling Rs 600 to Rs 99,960 per 10 grams in the national capital due to selling by jewellers and stockists in line with weak global cues, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had settled at Rs 1,00,560 per 10 grams in the previous market session.

Gold of 99.5 per cent purity dipped Rs 550 to Rs 99,250 per 10 grams (inclusive of all taxes). The yellow metal had closed at Rs 99,800 per 10 grams on Thursday.

Silver prices also diminished Rs 2,000 to Rs 1,05,200 per kilogram (inclusive of all taxes) on Friday. It had ended at Rs 1,07,200 per kg on Thursday.

"Silver slid from recent highs, nearing one-week lows and heading for their first weekly decline in three weeks. It fell below USD 35.70 per ounce after a sharp rally earlier in the week.

"The decline came as investors liquidated positions in bullion to cover losses elsewhere amid rising geopolitical tensions between Israel and Iran," Rahul Kalantri, Vice-President, Commodities at Mehta Equities, said.

The Bank of England on Thursday also held rates steady in its monetary policy meetings, which also limited gains of precious metals.

However, intensifying conflict between Israel and Iran, and weakness in the rupee is also supporting prices of gold and silver in the domestic markets, Kalantri said.

On the global market, spot gold was trading at USD 3,353.67, lower by USD 16.72 per ounce, or 0.5 per cent.

Spot silver fell 0.77 per cent to USD 36.10 per ounce in the overseas markets.

"Traders will watch developments on US trade tariffs and Middle East military engagement will drive volatility. Any signs of de-escalation or non-involvement from the US in the Iran-Israel conflict could keep gold under pressure.

"On the other side, renewed tensions will continue to support prices," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.