Gold, silver prices continued to extend losses for the second straight day in the national capital on Tuesday owing to a sluggish demand from jewellers and weak global cues, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity plunged Rs 1,750 to Rs 77,800 per 10 grams. It had closed at Rs 79,550 per 10 grams in the previous session.
Silver also plummeted Rs 2,700 to Rs 91,300 per kg against the previous close of Rs 94,000 per kg.
Price of gold of 99.5 per cent purity declined Rs 1,750 to Rs 77,400 per 10 grams. On Monday, the yellow metal had settled at Rs 79,150 per 10 grams.
Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery plunged Rs 612, or 0.81 per cent, to trade at Rs 74,739 per 10 grams.
"Gold continued to face significant pressure as the strength in the dollar index kept prices under USD 2,600 on COMEX. In MCX, gold fell, slipping below Rs 75,000 for the first time since October 10.
"The current downtrend suggests that further weakness could persist, potentially driving prices down towards Rs 72,000 if COMEX gold remains below USD 2,600 and tests the USD 2,500-level in the upcoming sessions," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
Silver contracts for December delivery slumped Rs 742, or 0.83 per cent, to Rs 88,440 per kg on the MCX.
In the overseas markets, Comex gold futures fell USD 19.90 per ounce, or 0.76 per cent, to USD 2,597.80 per ounce.
"Gold extended its fall on Tuesday amid Donald Trump's victory in the presidential election fuels economic optimism, which fuels the dollar's rally," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Meanwhile, the victory of Trump increases the likelihood of a ceasefire in the wars in Ukraine and the Middle East, thereby decreasing the demand for safe haven, Gandhi added.
Market participants are now awaiting US inflation data, including the Consumer Price Index (CPI) to be released on Wednesday and speeches from several Federal Reserve members, he said.
Comex silver futures traded 0.6 per cent lower at USD 30.43 per ounce in the Asian market hours.
According to Abans Holdings' Chief Executive Officer Chintan Mehta, gold prices remained weak as the dollar index rises to 4-month highs, with the probability of only a 25-basis points interest rate cut by the US Federal Reserve (Fed) in December.
Further, Trump's proposed policies, including higher tariffs and stricter immigration controls, are expected to drive inflation higher, softening expectations for significant rate cuts by the Fed and thereby reducing gold's appeal, Mehta said.
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