Gold snaps 7-day rally, declines ₹200 to ₹88,300/10gm in Delhi

Snapping the seven-day winning run, gold prices declined by ₹200 to ₹88,300 per 10 grams in the national capital following selling by stockists amid a bearish trend in global markets.

Gold of 99.5% purity also dropped ₹200 to ₹87,900 per 10 grams from the previous close of ₹88,100 per 10 grams.

Additionally, silver prices decreased ₹900 to ₹96,600 per kg from the previous trading close of ₹97,500 per kg on Monday.

Traders said the yellow metal prices depreciated ahead of Fed Chair Jerome Powell's testimony to Congress, which will be closely watched for insights about the US Federal Reserve's future interest rate-cut path.

The precious metal of 99.9% purity had surged by ₹2,430 to hit an all-time high level of ₹88,500 per 10 grams on Monday, according to the All India Sarafa Association.

In the last seven sessions, gold soared ₹5,660 or 6.8%. This year, the yellow metal has risen ₹8,910 or 11.22%.

On the MCX, gold futures for April delivery declined ₹333 to ₹85,483 per 10 grams. During the day, the yellow metal futures touched a lifetime high of ₹86,360 per 10 grams.

"Gold surged in MCX during early morning trade as tariff concerns fuelled panic buying, with central banks continuing their gold accumulation. However, a stronger rupee capped gains in MCX, leading to a reversal toward ₹85,450 before the evening session, highlighting persistent volatility," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

The upcoming US Consumer Price Index (CPI) data and Powell's testimony will be key events for gold traders, as the dollar index remains around $108, Trivedi added.

Silver futures for March delivery slumped ₹1,030 or 1.08% to ₹94,265 per kg on the Multi Commodity Exchange (MCX).

Globally, Comex gold futures for April delivery traded lower at $2,933.10 per ounce. In the intraday session, it surged by $34 per ounce or 1.16% to hit a record high of $2,968.39 per ounce.

"Despite some profit-taking, gold prices still hold comfortably above the $2,900-mark, buoyed by worries about a global trade war and economic uncertainty," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

Comex silver futures also quoted nearly 1% lower at $32.17 per ounce in the overseas markets.