Gold, silver tumble on weak global trend

NEW DELHI: Gold prices tumbled Rs 672 to Rs 51,328 per 10 gram in the national capital on Tuesday on a weak global trend, according to HDFC Securities. The yellow metal had closed at Rs 52,000 per 10 gram in the previous trading session.

Silver also witnessed massive selloff with prices tanking Rs 5,781 to Rs 61,606 per kilogram from Rs 67,387 per kilogram in the previous trade.

“Spot gold prices for 24 carat in Delhi plunged Rs 672, reflecting selloff in international prices despite rupee depreciation,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

The rupee depreciated 20 paise and settled at 73.58 (provisional) against the US dollar on Tuesday, tracking negative domestic equities.

In the international market, gold was trading lower at $ 1,900 per ounce, while silver depicted a flat trend and was quoting at $ 26.12 per ounce.

“Gold prices extended decline with other asset classes on stronger dollar. Investors switched to dollar as safe-haven avenue on fears of second wave of virus infections in Europe and UK,” Patel added.