Silver, gold fall up to 4% on rate cut uncertainty

New Delhi: Precious metal prices declined up to 4 per cent in the national capital, with silver tumbling to Rs 2.65 lakh per kilogram and gold sliding to Rs 1.63 lakh per 10 grams amid a strong US dollar and uncertainty over global monetary policy.

According to the All India Sarafa Association, the white metal slumped by Rs 11,000, or 3.97 per cent, to Rs 2,65,500 per kilogram from Thursday’s closing level of Rs 2,76,500 per kg. In the bullion market, gold of 99.9 per cent purity also declined by Rs 2,000, or 1.21 per cent, to Rs 1,63,200 per 10 grams.

The yellow metal finished at Rs 1,65,200 per 10 grams in the previous session. Gold prices in the domestic market faced sustained pressure from a resurgent US dollar and shifting expectations regarding monetary easing, Dilip Parmar, Senior Research Analyst, HDFC Securities, said.

He added that the intensifying conflict in Iran has sent crude oil prices soaring, stoking inflationary fears that may force the central banks to maintain a hawkish stance for an extended period.

In the international market, spot silver was trading nearly 1 per cent lower at $83.14 per ounce, while gold went up marginally to $5,088 per ounce.