Gold Prices Plummet ₹1,150 in Delhi, Silver Drops ₹1,000 Amid Global Weakness
New Delhi, Feb 27: Gold prices saw a sharp decline of ₹1,150 in the national capital on Thursday, reflecting a bearish trend in international markets. According to the All India Sarafa Association, gold fell to ₹88,200 per 10 grams, while gold of 99.5% purity also dropped by ₹1,150, settling at ₹87,800 per 10 grams from the previous close of ₹88,950.
Silver prices also faced significant pressure, plunging ₹1,000 to ₹98,500 per kg from its last closing price of ₹99,500 per kg. The domestic bullion markets remained shut on Wednesday due to Mahashivratri.
MCX Gold Futures Show Weakness
On the Multi Commodity Exchange (MCX), gold futures for April delivery recorded a drop of ₹554, settling at ₹85,320 per 10 grams. Analysts predict further downside risk if gold breaches the crucial ₹84,800 level.
"Gold prices weakened due to selling pressure on MCX, with prices touching ₹85,000. If gold falls below ₹84,800, further declines may follow," said Jateen Trivedi, Vice President of Research – Commodity and Currency at LKP Securities.
Investors are also awaiting the Core Personal Consumption Expenditures (PCE) Price Index data scheduled for release on Friday, which could provide further market direction.
Global Gold Prices Slide Below $2,900
In international markets, gold futures on COMEX for April delivery slipped by $23.10 per ounce, or 0.79%, to $2,907.50 per ounce. Meanwhile, spot gold prices dropped below the $2,900-mark, touching $2,892.95 per ounce.
"Gold prices corrected after reaching yet another record high, as a strengthening dollar and trade tariff concerns weighed on sentiment. However, safe-haven demand persists after former U.S. President Donald Trump announced a 25% tariff on European Union imports and postponed tariff implementations on Mexico and Canada to April 2 from the earlier March 4 deadline," said Chintan Mehta, CEO of Abans Holdings.
Mehta further noted that uncertainty over trade tariffs is keeping gold demand strong, with markets watching developments closely.
Silver Prices Also Decline
Silver futures also faced downward pressure, declining 0.34% in Asian trading hours to $32.47 per ounce.
According to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, traders are closely monitoring key U.S. macroeconomic indicators, including weekly jobless claims, January durable goods orders, and preliminary Q4 GDP data. Additionally, speeches from U.S. Federal Reserve officials later in the day could influence bullion prices and currency trends.
As markets navigate volatility, all eyes remain on global economic data and geopolitical developments that could impact gold and silver prices in the coming days.
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