Early Times Report
NEW DELHI, Jan 22: Gold and silver prices retreated from record highs in the national capital on Thursday as investors turned to profit-booking amid subdued global cues and easing demand for safe-haven assets, according to the All India Sarafa Association.
The yellow metal of 99.9 per cent purity declined by Rs 2,500, or 1.56 per cent, to Rs 1,57,200 per 10 grams (inclusive of all taxes) on Thursday, after closing at the highest-ever level of Rs 1,59,700 per 10 grams in the previous session. Silver ended its unprecedented nine-day rally, tumbling by Rs 14,300, or 4.3 per cent, to Rs 3,20,000 per kilogram (inclusive of all taxes) from the previous close of Rs 3,34,300 per kg. The white metal surged by Rs 11,300 on Wednesday.
"Gold and silver corrected from record highs as safe-haven demand eased and investors took profits following a record-breaking rally," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
He said both metals retreated after US President Donald Trump withdrew his threat to impose tariffs on European nations and announced that a framework for a future deal regarding Greenland had been established.
"The remarks by Trump have shifted market sentiment and enhanced risk appetite, prompting investors and traders to unwind their long positions in safe-haven assets," Gandhi said.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, easing geopolitical risk sentiment triggered partial profit booking in domestic markets even as Trump's comment that the US will have a good trade deal with India kept bullion prices slightly pressured.
According to FOREX.com, gold slipped by USD 8.80, or 0.18 per cent, to USD 4,822.65 per ounce. The yellow metal had retreated and settled at USD 4,836.67 on Wednesday, after hitting a record of USD 4,888.22 per ounce in the global markets.
"Spot gold is trading lower at around USD 4,820 per ounce level after US President Trump ruled out forceful takeover of Greenland in his speech in World Economic Forum, Davos on Wednesday," Praveen Singh, Research Analyst, Mirae Asset Sharekhan, said.
He said a slight softening in global bond yields has added to the downside pressure on gold. However, elevated geopolitical tensions have been diffused to some extent, concerns are likely to linger, which will support the shiny metal on the upside.
Domestic gold prices may draw further support from the possibility of an import duty hike in the upcoming Union Budget," Singh added.
Spot silver was trading 0.27 per cent higher at USD 93.36 per ounce in overseas trade. The white metal had touched a record of USD 95.89 per ounce on Tuesday. |
