Gold plunges Rs 1,250 to Rs 78,150 per 10 gm amid strong dollar; silver plummets Rs 1,100

Gold prices fell sharply for the 2nd consecutive league and plunged Rs 1,250 to Rs 78,150 per 10 grams successful the nationalist superior connected Tuesday arsenic strengthening dollar took the sheen disconnected the yellowish metallic successful the planetary markets.

According to the All India Sarafa Association, the precious metallic of 99.9 per cent purity settled Rs 1,000 little astatine Rs 79,400 per 10 grams connected Monday. Gold of 99.5 per cent purity besides slumped Rs 1,250 to Rs 77,750 per 10 grams from Monday's closing level of Rs 79,000 per 10 grams.

Silver besides followed suit and declined Rs 1,100 to Rs 90,600 per kg connected Tuesday. It had closed Rs 1,600 little astatine Rs 91,700 per kg successful the erstwhile session.

Analysts said US President-elect Donal Trump's menace of imposing further tariff connected imports from China, Mexico and Canada drove investors towards the American currency, portion easing geopolitical concern successful the Middle East reduced gold's safe-haven appeal.

However, successful futures commercialized connected the Multi Commodity Exchange (MCX), golden contracts for December transportation roseate Rs 175 oregon 0.23 per cent to commercialized astatine Rs 75,486 per 10 grams. It had closed astatine Rs 75,311 per 10 grams connected Monday.

"Gold remained volatile, trading betwixt Rs 74,850-75,500 connected MCX, arsenic de-escalation successful Middle East tensions led to the fading of the warfare premium," Jateen Trivedi, VP Research Analyst - Commodity and Currency astatine LKP Securities, said.

The bullion is expected to enactment volatile arsenic marketplace participants measure planetary developments, Trivedi added. Meanwhile, metallic contracts for December transportation jumped Rs 698 oregon 0.8 per cent to Rs 88,397 per kg from the erstwhile adjacent of Rs 87,699 per kg.

Globally, Comex golden futures climbed $13.40 per ounce oregon 0.51 per cent to $2,656 per ounce.

On Monday, the precious metallic plunged $100.80 per ounce oregon 3.71 per cent to $2,615.10 per ounce arsenic President-elect Trump vowed an further 10 per cent tariff connected Chinese goods and 25 per cent tariff connected each imports from Mexico and Canada, starring to a crisp summation successful dollar.

Silver besides quoted 0.94 per cent higher astatine $30.95 per ounce successful the Asian marketplace hours.

According to Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, traders volition beryllium looking astatine the minutes from the Federal Reserve's November meeting, US GDP revisions and halfway Personal Consumption Expenditures (PCE) terms scale information that are expected to supply insights into the US cardinal bank's argumentation outlook.