Gold slumps Rs 700 to Rs 79,000 per 10 gm; silver rises Rs 300

New Delhi, Jan 6: Gold prices plunged Rs 700 to Rs 79,000 per 10 grams in the national capital on Monday, according to the All India Sarafa Association.

The precious metal had ended at Rs 79,700 per 10 grams on Friday.

However, silver prices rose from Rs 300 to Rs 90,700 per kg on Monday. The white metal settled at Rs 90,400 per kg in the previous session.

The price of gold with 99.5 per cent purity declined Rs 700 to Rs 78,600 per 10 grams against the previous close of Rs 79,300 per 10 grams on Friday.

In futures trade on the MCX, gold contracts for February delivery decreased Rs 247 or 0.32 per cent to Rs 77,070 per 10 grams.

However, silver futures for March delivery appreciated Rs 479 or 0.54 per cent to Rs 89,700 per kg on the Multi Commodity Exchange (MCX).

On Monday, Food and Consumer Affairs Minister Pralhad Joshi asked the Bureau of Indian Standards (BIS) to consider implementing mandatory hallmarking for silver and silver artefacts following consumer demands.

The work in this direction has already begun and the government will take a decision after completion of stakeholder consultations and feasibility assessment by BIS, the minister said.

Silver hallmarking, which certifies the purity of the white metal, is currently voluntary.

Comex gold futures rose 0.18 per cent at USD 2,659.60 per ounce in the overseas markets.

"Last week, gold and silver prices faced high volatility but managed a remarkable recovery. This rebound came despite challenges posed by a stronger dollar and rising US Treasury yields," Rahul Kalantri, VP of Commodities at Mehta Equities Ltd, said.

Mixed economic reports from the US and Europe offered some relief to precious metals, while weak manufacturing activities in developed nations drove safe-haven demand, Kalantri said.

Additionally, Comex silver futures traded 2.68 per cent higher in the Asian market hours at USD 30.87 per ounce.

Market participants this week will focus on the US non-farm payrolls jobs data, which will begin the monthly cycle of US labour stats for 2025, Renisha Chainani, Head of Research at Augmont, said.

The data release will provide more impetus to determine the next direction for the bullion prices.

"January has consistently seen the highest price gains in the last 20 years as investors and asset allocators build new long positions, accompanied, of course, by strong jewellery demand over the holiday season," Chainani said.