Gold slumps Rs 1,150 to Rs 78,350 per 10 gm; silver declines Rs 300

New Delhi, Dec 16: Gold prices slumped for the second straight session by Rs 1,150 to Rs 78,350 per 10 grams in the national capital on Monday on frantic selling by stockists and retailers, the All India Sarafa Association said.

The precious metal of 99.9 per cent purity closed at Rs 79,500 per 10 grams on Friday.

Silver also declined Rs 300 to Rs 92,500 per kg.

The white metal finished at Rs 92,800 per kg in the previous trading session. In the last two trading sessions, it had plummeted Rs 4,500 per kg.

The price of gold of 99.5 per cent purity slipped Rs 1,150 to Rs 77,950 per 10 grams on Monday.

Traders said the sentiment was downbeat largely with uncertainty over the implications of concerns about US President-elect Donald Trump's economic policies that could act as a tailwind for the US dollar.

In futures trade on the MCX, gold contracts for February delivery rose Rs 143, or 0.19 per cent, to trade at Rs 77,279 per 10 grams.

During the day, the yellow metal hit an intra-day low of Rs 76,904 per 10 grams and a high of Rs 77,295 per 10 grams, respectively.

"Gold traded within a volatile range, continuing last week's up-and-down swings as markets brace for a series of major economic events this week," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Silver contracts for March delivery climbed Rs 319, or 0.35 per cent, to Rs 91,320 per kg on the commodities exchange.

Comex gold futures rose USD 2.70 per ounce, or 0.10 per cent, to USD 2,678.50 per ounce in the international markets.

"Safe haven demand continues to provide support for gold and limit downside due to ongoing geopolitical tensions in the Middle East, particularly after Israel carried out air and ground attacks in Gaza," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Flash PMIs from the United States and the Eurozone to be released later on Monday might influence overall risk sentiment and offer volatility for bullion, Gandhi said.

Echoing similar sentiments, Pranav Mer, Vice President, EBG, Commodity & Currency Research, JM Financial Services, said, "Gold prices are likely to trade steady and may see some consolidation as focus turns on the key central bank policy meeting outcome starting with Fed on Wednesday, followed by Bank of Japan/ Bank of England on Thursday and People's Bank of China (PBoC) on Friday.

Silver in the Asian trading session traded 0.26 per cent at USD 31.11 per ounce.