Gold plunges Rs 930 to Rs 97,670 per 10 g amid easing off Israel-Iran tensions
New Delhi, June 27: Gold prices plunged Rs 930 to Rs 97,670 per 10 grams in the national capital on Friday as traders rushed to selling amid easing off Middle East tensions and favourable reports about a trade deal between the US and China.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 98,600 per 10 grams on Thursday.
On Friday, gold of 99.5 per cent purity declined by Rs 850 to Rs 97,200 per 10 grams (inclusive of all taxes). It had settled at Rs 98,050 per 10 grams in the previous market session.
"Gold prices continue to correct as strong profit booking sets in, with safe-haven demand easing due to the lack of fresh geopolitical triggers.
"Crude oil prices also declined after Iran signalled restraint by avoiding strikes on key oil infrastructure and transport routes, particularly the Strait of Hormuz which is one of the most critical choke points for global oil shipments," Abans Financial Services' Chief Executive Officer Chintan Mehta said.
This de-escalation has reduced immediate risk premiums across markets, pressuring gold further, Mehta added.
In addition, silver prices slipped by Rs 100 to Rs 1,03,000 per kilogram (inclusive of all taxes) on Friday. The white metal had ended at Rs 1,03,100 per kg on Thursday.
In the overseas market, spot gold dropped by USD 43.45 or 1.31 per cent to USD 3,284.40 per ounce.
"Investors now await the release of the US Personal Consumption Expenditure (PCE) price index data later in the day for further cues about the Fed's interest rate-cut path," Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, the US Federal Reserve Chair Jerome Powell's recent comments indicating that interest rate cuts are not imminent further weighed on bullion prices.
The weaker dollar index confirmed easing global risk, prompting investors to rotate funds into riskier assets like equities and cryptocurrencies, Trivedi said.
