Gold prices plummeted by Rs 766 to Rs 40,634 per 10 gram in the national capital on Thursday amid a stronger rupee and weak global trends, according to HDFC Securities.
Tracking weakness in gold, silver prices also tumbled Rs 1,148 to Rs 47,932 per kg from Rs 49,080 per kg in the previous trade. The precious metal had closed at Rs 41,400 per 10 gram on Wednesday.
“Gold traded lower as the US and Iran stepped back from a deeper military conflict. De-escalation resulted in buying in riskier assets like global equities,” HDFC Securities Head - Advisory (PCG) Devarsh Vakil said.
In the international market, gold and silver depicted a weak trend and were trading lower at USD 1,546 per ounce and USD 17.93 per ounce, respectively.
“Weakness in international gold prices and stronger rupee, weighed on domestic gold prices. Near-term focus will remain on marriage season retail demand,” he added.
In opening trade on Thursday, the Indian rupee advanced 22 paise to 71.48 per US dollar as global markets stabilised after the US and Iran toned down their war rhetoric.