Gold prices drop ₹400 to ₹1.6 lakh per 10 gm, silver flat at ₹2.6 lakh per kg on weak global trends

Gold prices on Thursday, February 12 fell by ₹400 to ₹1.6 lakh per 10 gram in Delhi, while silver prices remained flat at ₹2.68 lakh per kg on weak global trends and lower expectations of a rate cut by the US Federal Reserve. 

Gold (99.9% purity, 24K) fell by 0.25% (₹400) to ₹1,60,900 per 10 gram after settling at ₹1,61,300 per 10 gram on Wednesday, according to the All India Sarafa Association. 

Meanwhile, silver prices remained unchanged at ₹2,68,500 per kg in the national capital. 

"Gold traded within range with modest declines on Thursday amid markets scaling back aggressive rate-cut expectations following stronger-than-expected data from the US labour market," a PTI report quoted a commodity analyst as saying.

According to the US non-farm payrolls report for January, the economy added 1.3 lakh jobs, while the unemployment rate fell to 4.3%, highlighting resilience in the labour market and adding downward pressure on bullion.

The analyst added that the robust labour data lowered expectations of an immediate rate cut by the US Federal Reserve, weighing on precious metals.

"However, the broader policy shift towards eventual rate cuts remains intact," he said.

Gold, silver futures

Gold futures for April expiry fell to an intraday low of ₹1,57,700 per 10 gram on the Multi Commodity Exchange (MCX) on Thursday, down 0.6% from the previous close of ₹1,58,755 per 10 gram.

Silver futures also fell on Thursday, dropping 3.2% to an intraday low of ₹2,54,526 per kg on the MCX. The white metal futures for the March delivery closed at ₹2,63,018 per kg on Wednesday. 

International markets

In the overseas markets, spot gold fell by $22.07, or 0.43%, to $5,062.46 per ounce, while silver was trading nearly 2% lower at $82.84 per ounce.

Following the release of stronger-than-expected US employment data, gold and silver were trading slightly lower in global markets as well.

In a market note cited by the PTI report, Kotak Securities said silver fell sharply to $81.6 before rebounding to around $83. The metal remains highly volatile, down roughly one-third from its January 29 record high, with recent price swings the most extreme since 1980, driven by thin liquidity and aggressive positioning, it said. 

While delayed monetary easing limits near-term upside for non-yielding assets like gold, persistent geopolitical risks, sustained central bank buying, and ongoing concerns over currency debasement continue to provide underlying support to bullion, it added.

"Focus now turns to jobless claims and Friday's US Consumer Price Index (CPI) numbers for further policy direction," it noted.