Gold plunges Rs 3,900, silver plummets Rs 7,800

New Delhi: Gold prices plunged by Rs 3,900 to Rs 1,25,800 per 10 grams in the national capital on Tuesday, tracking a decline in global rates amid fading expectations of an interest rate cut by the US Federal Reserve next month. The precious metal of 99.5 per cent purity tanked by Rs 3,900 to Rs 1,25,200 per 10 grams, according to the All India Sarafa Association.

Silver prices were also under pressure as the white metal tumbled by Rs 7,800 to Rs 1,56,000 per kilogram. “Gold and silver experience steep selloffs, as investors wait for hints on the Federal Reserve’s policy course from a succession of US economic data releases this week, amid waning hopes for a US interest rate cut. “A rate cut in December has become less likely due to the absence of US data over the last six weeks and hawkish comments made by a number of Fed officials,” Renisha Chainani, Head - Research at Augmont, said.

In the overseas markets, spot gold extended the losing run for the fourth consecutive session, slipping marginally lower at $4,042.32 per ounce. In the last four sessions, the precious metal dropped by $152.82, or 3.64 per cent, from $4,195.14 an ounce, recorded on November 12.