Gold declines ₹400 to ₹97,620/10 g; silver tumbles ₹2,500

Gold prices dipped ₹400 to ₹97,620 per 10 grams in the national capital on Friday due to continuous selling by stockists, according to the All India Sarafa Association.

The yellow metal of 99.9% purity had closed at ₹98,020 per 10 grams in the previous market session.

In the national capital, gold of 99.5% purity dipped by ₹300 to ₹97,500 per 10 grams (inclusive of all taxes) on Friday against the preceding session's closing level of ₹97,800 per 10 grams.

"Gold traded weak, tracking softness in the international markets, which hovered near $3,290 per ounce.

"The decline comes amid pressure from the US Federal Reserve's continued hawkish stance and no indication of near-term interest rate cuts, which has dampened sentiment for safe-haven assets," Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said.

As per the Sarafa Association, silver prices also extended the losses for the second straight day and tumbled by ₹2,500 to ₹1,09,500 per kilogram (inclusive of all taxes) on Friday.

The white metal had ended at ₹1,12,000 per kg in the previous market close.

On the global front, spot gold went up 0.12% to trade at $3,294.31 per ounce.

"Gold continued to trade with a negative bias on the last trading day of the week and is set to close lower on a weekly basis.

"This decline is attributed to an overall decrease in haven demand and a strong recovery in the US dollar, which surged to a nine-week high, gaining more than 2% so far this week," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

Spot silver slipped by 0.75% to $36.44 per ounce in New York.

According to Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services, silver prices stayed subdued amidst the fall in industrial metals, while market participants remain cautious due to global tariff uncertainties.

"The US central bank held interest rates steady in the 4.25-4.50% range, and Chair Jerome Powell's comments after the decision dampened hopes for a September interest rate cut," Modi said.

Market participants will focus on the US non-farm payroll data later in the day and any update regarding tariffs, he added.