New Delhi: Gold and silver prices declined for the second straight day in the futures trade on Thursday, tracking weak global trends as investors booked
profits ahead of the key US jobs data.
Analysts said the employment numbers will offer fresh cues on the Federal Reserve’s monetary policy outlook.
On the Multi Commodity Exchange (MCX), gold futures for February delivery decreased Rs 896, or 0.65 per cent, to Rs 1,37,113 per 10 grams in a business turnover of 14,957 lots.
Silver futures also witnessed heavy selling pressure on the MCX amid cautious positioning by traders. The white metal for the March contract tumbled by Rs 7,365, or 2.94 per cent, to Rs 2,43,240 per kilogram in 12,295 lots.
On Wednesday, the metal had touched a new record of Rs 2,59,692 per kg before settling at Rs 2,50,605 per kg. In the last two trading sessions, silver prices have crashed by Rs 16,452, or 6.33 per cent.
“Gold and silver extended losses from the previous session, as investors assessed mixed US economic data while geopolitical developments remained a key focus,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.
In the international market, gold futures on the Comex for February delivery slipped by USD 29.70, or 0.67 per cent, to USD 4,432.80 per ounce.
Silver futures for the March contract fell by USD 2.20, or 2.84 per cent, to USD 75.41 per ounce in the overseas trade.
“Precious metals saw profit-booking as traders locked in profits ahead of the US NFP (non-farm payroll) report as investors weighed mixed US economic data, while geopolitical risks remained a significant focus,” Renisha Chainani, Head – Research at Augmont, said.
She added that investors are now turning to Friday’s non-farm payrolls report for clues on the central bank’s policy direction, with markets expecting two rate cuts this year.
On the geopolitical front, rising tensions also remained in focus, with the US announcing steps to assert long-term control over Venezuelan petroleum sales and detaining several Caracas-linked tankers.
Chainani said the resilient global risk mood has begun to show indications of weakness as a result of escalating geopolitical tensions, which could act as a tailwind for the safe-haven asset.
