Gold rates in Delhi fall to ₹1,25,900/10g amid easing safe-haven demand, silver slips ₹4,250

Gold (99.9% purity, 24K) rates in Delhi on Monday, October 27, fell by ₹700 to ₹1,25,900 per 10 gram due to weak global trends, as easing US-China trade tensions resulted in lower safe-haven demand for the precious metal. 

The yellow metal of 99.5% purity fell to ₹1,25,300 per 10 gram after settling at ₹1,26,000 per 10 gram in the previous session. 

Silver also declined on Monday, falling sharply by ₹4,250 to ₹1,51,250 per kg after ending at ₹1,55,500 per kg on Saturday. 

Gold and silver futures for the December delivery fell on the Multi Commodity Exchange in line with domestic precious metal prices.

Easing trade tensions

The progress in the deal between the US and China can be seen as a major de-escalation from the tense trade standoff. As gold thrives in geopolitical tensions and market volatility, the easing of trade tensions between the world’s two largest economies dented its safe-haven demand. 

In the international markets, spot gold extended the losses for the second straight day, falling by $97.86 (2.38%) to $4,015.55 per ounce. Spot silver declined to $47.60, down 2.03%. 

Investors are now closely eyeing the upcoming Trump-Xi meeting and the US Federal Reserve meeting this week to determine the outlook of the markets. 

"The US Federal Reserve is largely anticipated to cut interest rates by 25 basis points after weaker-than-expected inflation data, while the European Central Bank and Bank of Japan are expected to maintain current policy rates," a PTI report quoted Renisha Chainani, Head of Research at Augmont, as saying.