Amid the tense mood unfolding across the Middle East, the shine on precious metals keeps dimming. Delhi's bullion market watched both gold and silver slip once more in Friday's trade, and after this fresh dip the yellow metal has slid to its lowest level in three weeks. Because bullion trading stays shut every Saturday and Sunday, the next real move will only surface on Monday.
Gold Down ₹800, Silver Sheds ₹2,000
Going by the numbers from the All India Sarafa Association, 99.9 percent purity gold in the capital's market fell 800 rupees on Friday to land at 1,45,500 rupees per 10 grams. A day earlier, on Thursday, the same grade had closed at 1,46,300 rupees per 10 grams. What stands out is that back on 25 June, gold hovered around 1,45,300 rupees per 10 grams, so the current price has effectively circled back to that zone. Silver, meanwhile, dropped 2,000 rupees to 2,22,500 rupees per kilogram, down from Thursday's closing rate of 2,24,500 rupees per kilogram.
Softness Returns After a Two Session Pause
Traders in the market said that after holding steady for two straight sessions, gold turned lower again, which is what pushed it to its three week trough. Silver has been a slightly different story, with its decline running on without a break. The overseas picture, however, ran counter to the domestic mood. On the global front, spot gold climbed 15.42 dollars, or 0.39 percent, on Friday to reach 3,992 dollars an ounce. Silver stayed weak even there, easing to 55.37 dollars an ounce.
Gold Ends Higher on the Futures Counter
On MCX, the trend looked entirely different from the spot market. The 5 August delivery gold contract closed Friday up 658 rupees, or 0.47 percent, at 1,41,006.00 rupees per 10 grams. Through the session it touched a high of 1,41,052 rupees and a low of 1,39,801 rupees per 10 grams. Likewise, the 4 September silver contract wrapped up with a modest gain of 46 rupees, or 0.02 percent, at 2,16,449.00 rupees per kilogram. During the day it swung between a high of 2,17,234.00 rupees and a low of 2,13,781.00 rupees per kilogram.
What Lies Ahead
On the whole, both metals remain soft in the domestic bullion trade right now, even as gold shows a touch of strength on the overseas spot market. For buyers and investors, this tug of war will matter right up to Monday's session, since the weekend shutdown leaves prices parked where they are.
