Gold declines Rs 1,100; silver slips by Rs 600

New Delhi: Gold prices declined Rs 1,100 to Rs 1.64 lakh per 10 grams in the national capital on Friday as traders booked profits at elevated levels for the second straight session, while silver also slipped to Rs 2.71 lakh per kilogram. According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity depreciated Rs 1,100, or nearly 1 per cent, to Rs 1,64,100 per 10 grams.

Silver also fell Rs 600 to Rs 2,71,700 per kg in the bullion market. Analysts said traders locked in gains after the recent sharp rally in precious metal prices, even as global trends remained mixed.

“After opening with a gap up earlier in the week, both gold and silver gradually declined this week as a stronger US dollar and rising Treasury yields, along with reduced expectations for interest rate cuts by Federal Reserve, outweighed safe-haven demand stemming from the escalating Middle East conflict,” Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

He added that investors continued to exit gold-backed exchange traded funds (ETFs) this week, indicating softer investment demand.