Gold drops Rs 1,150 to Rs 80,050 per 10 grams; silver declines Rs 2,000

New Delhi: Gold price dropped Rs 1,150 to Rs 80,050 per 10 grams in the national capital on Friday on slackened demand from jewellers and retailers, according to All India Sarafa Association.

Silver also remained under selling pressure and slipped below the Rs 1 lakh mark by declining Rs 2,000 to Rs 99,000 per kg. The metal had closed at Rs 1.01 lakh per kg in the previous close on Thursday.

Additionally, gold of 99.5 per cent purity fell Rs 350 to Rs 80,450 per 10 grams against the previous close of Rs 80,800, while the precious metal of 99.9 per cent purity declined Rs 1,150 to Rs 80,050 per 10 grams against Rs 81,200 on Thursday.

Traders said tepid demand from jewellers and retailers in the local markets and a weak trend in the overseas markets weighed on gold prices.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery declined Rs 406 or 0.52 per cent to trade at Rs 77,921 per 10 grams.

Silver contracts for December delivery plummeted Rs 1,134 or 1.17 per cent to Rs 95,898 per kg on the bourse.

In the global markets, Comex gold futures fell by USD 15.90 per ounce or 0.58 per cent to USD 2,733 per ounce.

"Gold declined on Friday as US macro data fuelled growing bets that the US Federal Reserve's rate-cutting cycle will be less aggressive than expected," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

US unemployment claims declined for a second week, highlighting a resilient labour market, while a rise in the S&P PMI reinforced strong private sector momentum impacted gold prices, Gandhi added.

However, the demand for a safe haven and the expectation of improving India's retail demand for upcoming festivities capped the heavy losses, he noted.

According to Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, gold traded lower in delayed response to Thursday's US data. Further, the lack of specific details of alternate payment systems at the BRICS summit is also pressuring the metal.

Silver was traded 1.39 per cent lower at USD 33.33 per ounce in the Asian market hours.

"On the market outlook, the bullion is likely to close the week in positive, amid support from safe-demand, ETF buying, uncertain US Presidential elections outcome, and rising bets for aggressive rate cuts from global central banks," Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, said.

Inputs from PTI