Gold snaps 10-day rally; declines Rs 200 on muted demand

New Delhi: Gold prices declined by Rs 200 to Rs 78,100 per 10 grams, snapping a 10-day winning streak, in the national capital on Tuesday, according to the All India Sarafa Association.

The precious metal closed at Rs 78,300 per 10 grams on Monday.

However, silver remained flat at Rs 92,500 per kilogram on Tuesday.

Additionally, gold of 99.5 per cent purity fell by Rs 200 to Rs 77,700 per 10 grams. It had finished at Rs 77,900 per 10 grams in the previous close on Monday.

Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery jumped by Rs 347 or 0.46 per cent to Rs 75,958 per 10 grams.

Silver also climbed Rs 441 or 0.49 per cent to trade at Rs 91,160 per kg on the bourse.

"Gold prices traded positively with gains. Market participants are closely watching this data-packed week, with the prime focus on non-farm payrolls and unemployment data scheduled for Friday.

"Any significant deviation in the data could impact gold's short-term movement," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

In the Asian trading hours, Comex gold is trading 0.34 per cent higher at USD 2,668.50 per ounce.

"Gold prices tumbled to the lowest level in four days yesterday amid US Fed chair Jerome Powell leaning in favour of less aggressive policy easing by the Fed, which triggered a notable upswing in the US Dollar, as US Treasury bond yields also rebounded across the curve," Maneesh Sharma, AVP- Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said.

Silver also quoted 0.48 per cent higher at USD 31.61 per ounce in the international markets.

"Gold prices have given up some of the gains after Fed Chair Powell stated that the recent 50-basis-point cut should not be seen as a sign of further aggressive cuts, representing his confidence in economic strength and indicating cooling in inflationary pressure.

"The future interest rate trajectory will be driven by developments in the economy, thus making the upcoming economic data even more important to gauge the economic progress," Abans Holdings CEO Chintan Mehta said.