Gold falls Rs 350 to Rs 77,350 per 10 gms; silver rises Rs 300

New Delhi, Oct 10: Gold prices declined Rs 350 to Rs 77,350 per 10 grams in the national capital on Thursday due to tepid demand from local jewellers and retailers, according to the All India Sarafa Association.

The precious metal had closed at Rs 77,700 per 10 grams on Wednesday.

However, silver prices appreciated by Rs 300 to Rs 91,500 per kg. In the previous session, it had settled at Rs 91,200 per kg, according to the association.

Continuing its slide for the third day in local markets, gold of 99.5 per cent purity declined Rs 350 to Rs 76,950 per 10 grams.

Gold has declined Rs 1,350 per 10 grams in the past three sessions since October 8.

Traders attributed the fall in gold prices to subdued demand from local jewellers and stockists.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery climbed Rs 211 or 0.28 per cent to Rs 75,145 per 10 grams.

Silver contracts for December delivery increased Rs 313 or 0.35 per cent to Rs 89,185 per kg on the bourse.

Globally, Comex gold futures rose 0.48 per cent to USD 2,638.70 per ounce.

"Gold was traded with a mild negative bias on Thursday, pressured by a higher US dollar and aggressive comments from Federal Reserve policy makers, which reduce the possibility of a big rate cut by the US Federal Reserve," Saumil Gandhi, Senior Analyst of Commodities, HDFC Securities, said.

According to Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, gold is seen trading steady but with a positive bias as we look ahead to US Consumer Price Index data and weekly initial claims data due later in the day.

Any sign of cooling inflation would be positive for the dollar and negative for bullion as it would further scale back rate cut expectations, but an uptick in the inflation could trigger a sharp up move in bullion prices, Mer added.

In the Asian trading hours, silver futures went up 0.68 per cent to 30.88 per ounce.

"Gold is expected to range trade as traders closely monitor geopolitical developments. Further, US CPI data may help the metal recover some of its losses, though upside seems to be capped," Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said.