New Delhi: Gold prices extended their losing streak for the fourth consecutive session on November 13, declining Rs 2,500 to Rs 1,40,900 per 10 grams in the national capital, as weak global trends and subdued post-Diwali demand weighed on the precious metal.
The price of 99.9 per cent pure gold fell to Rs 1,40,900 per 10 grams, inclusive of all taxes, from 12th November's closing level of Rs 1,43,400, according to the All India Sarafa Association.
Silver prices also resumed their downward movement after remaining unchanged in the previous session. The white metal dropped Rs 3,500 to Rs 1,84,000 per kg, inclusive of all taxes, against the previous close of Rs 1,87,500.
"Domestic gold prices remained under pressure on Friday, tracking weak global cues and subdued retail demand following the Diwali festive season," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Vikram Subburaj, CEO of Giottus.com, said silver was also witnessing a sharp correction, with rising US Treasury yields and a stronger dollar putting pressure on precious metals.
The steeper fall in silver underscored its greater sensitivity to shifts in investor risk appetite and expectations surrounding industrial demand, he added.
In international markets, spot gold recovered USD 27.21, or 1 per cent, to USD 3,904.87 per ounce on Friday, after plunging 3 per cent in the previous session to settle at USD 3,877.52. The decline had pushed the metal below the psychologically significant USD 4,000 mark.
Silver, meanwhile, remained largely unchanged at USD 50.04 per ounce.
Gandhi said gold was hovering around USD 3,900 per ounce after touching a fresh 52-week low on 12 November. The selloff gathered momentum following US President Donald Trump's remarks that Washington did not need a peace agreement with Tehran, dampening expectations of an immediate diplomatic breakthrough.
Market participants are now awaiting the US Producer Price Index (PPI) and core PPI data for indications of inflation trends and the Federal Reserve's monetary policy outlook. Speeches by Fed officials will also be closely watched for clues on the central bank's December policy decision, Gandhi said.
On the outlook, Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said volatility in bullion was likely to remain elevated amid fluctuations in the US dollar.
He added that continuing tensions in West Asia had kept crude oil prices supported, fuelling inflation concerns and reinforcing expectations of tighter monetary conditions by the US Federal Reserve.