Gold prices fall over Rs 400, silver down Rs 1,000 amid US tariff uncertainties

New Delhi, July 7 (IANS) Gold rates fell over Rs 400 on Monday amid looming uncertainty over the US reciprocal tariffs, as silver prices also took a hit of over Rs 1,000.

The 24-carat gold prices closed at Rs 96,596, down Rs 425 against the previous day's closing price of Rs 97,021, the India Bullion and Jewellers Association (IBJA) latest data showed.

As per the data, silver was priced at Rs 106,531 per kg, down Rs 1,049 as compared to Rs 107,580, the last day's price.

Gold has come down slightly after the ceasefire announcements as well as stronger than expected US data in recent days.

“However, given that gold buying by central banks is running at above 1,000 tonnes per annum, and unlikely to abate in the next few months, and that inflation is still running higher than what the Fed expects," said Sandip Raichura, CEO of Retail Broking and Distribution and Director, PL Capital.

Meanwhile, the future contract expiring on August 5 fell Rs 487 or 0.5 per cent to 96,503.0 per 10 grams against the previous day's closing price of Rs 96,990 on Multi Commodity Exchange (MCX).

At the same time, Comex gold fell 0.93 per cent or $31.10 to $3,311.80 per ounce.

"Gold prices stayed range bound to weak near Rs 96,650, down about Rs 350, as Comex gold slipped to $3,310 amid cautious sentiment," said Jateen Trivedi, VP Research Analyst-Commodity and Currency, LKP Securities.

The expiry of the US trade tariff extension timeline keeps uncertainty around global trade deals in focus. Participants expect a possible extension, which is keeping gold under slight pressure, said analysts.

Meanwhile, due to investor hesitancy over the interim India-US trade agreement, the Indian stock market closed flat on Monday.

The Sensex ended the day at 83,409.68, up just 9.61 points, or 0.01 per cent. The Nifty ended the day unchanged at 25,461.30, up 0.30 points.

--IANS

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