Gold prices slide: Yellow metal dips Rs 4,100 per 10g; drops below $4,000 mark globally

Gold prices plunged sharply on Tuesday, slipping below the $4,000-an-ounce mark in global markets and recording a fall of Rs 4,100 to Rs 1,21,800 per 10 grams in the national capital as easing US-China trade tensions reduced the metal’s safe-haven appeal.According to the All India Sarafa Association, gold had closed at Rs 1,25,900 per 10 grams on Monday. In the local bullion market, gold of 99.5 per cent purity also tumbled by Rs 4,100 to Rs 1,21,200 per 10 grams from the previous close of Rs 1,25,300 per 10 grams, inclusive of taxes.“Gold dipped further on Tuesday and extended losses due to diminishing safe haven demand. Selling accelerated and the yellow metal prices slid to a three-week low,” said Saumil Gandhi, senior analyst – commodities at HDFC Securities, as quoted by news agency PTI. He attributed the decline to “technical selling that occurred after an intra-day failure to maintain levels above the $4,000 psychological threshold.”Silver too witnessed a steep correction, dropping by Rs 6,250 to Rs 1,45,000 per kilogram from Rs 1,51,250 in the previous session. In international trade, spot gold fell by $94.36, or 2.37 per cent, to $3,887.03 per ounce, after losing 3.21 per cent in the prior session.“Spot gold continues to trade under pressure on reduced safe haven demand due to US-China trade deal optimism,” said Praveen Singh, head of commodities and currencies at Mirae Asset Sharekhan, as per PTI. He added that outflows from global gold-backed exchange traded funds (ETFs) fell for the third straight day on October 24, further weighing on prices.Meanwhile, US President Donald Trump and Chinese leader Xi Jinping are expected to finalise a trade deal framework this week, while optimism over a possible agreement with Japan also pressured bullion. Investors are now awaiting the US Federal Open Market Committee’s policy outcome on Wednesday, where a 25-basis-point rate cut is widely expected.According to Gandhi, “the correction in gold will persist, with a potential downside of 5-10 per cent, likely as big players take profit after the price increased by more than 50 per cent this year.”