Gold falls Rs 200 to Rs 79,100 per 10 gm; silver rises Rs 500

Gold prices fell Rs 200 to Rs 79,100 per 10 grams in the national capital on Wednesday amid a firm trend in international markets, according to the All India Sarafa Association. The precious metal of 99.9 per cent purity settled at Rs 79,300 per 10 grams in the previous session. Snapping a three-day losing run, silver climbed Rs 500 to Rs 92,000 per kg on Wednesday. It closed at Rs 91,500 per kg on Tuesday.

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In the last three sessions, the white metal plunged Rs 5,500 per kg. The price of gold of 99.5 per cent purity slipped Rs 200 to Rs 78,700 per 10 grams from the previous close of Rs 78,900 per 10 grams on Tuesday. Gold remains on the defensive as the market braces for the outcome of the US Federal Reserve's (Fed) meeting, which can provide forward guidance for bullion prices, experts said.

Meanwhile, in futures trade on the MCX, gold contracts for February delivery went up Rs 74, or 0.1 per cent, to trade at Rs 76,945 per 10 grams. "Gold continues to trade within a range as market participants await the Fed's policy announcement tonight, with increased focus on the 2025 outlook and concerns surrounding the job market," Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.

In MCX, gold is trading near Rs 76,950. The policy statement is expected to set the tone for the next leg of movement in gold prices, Trivedi added. However, silver contracts for March delivery slipped Rs 45, or 0.05 per cent, to Rs 90,830 per kg on the exchange. Comex gold futures in the Asian trading session rose 0.08 per cent to USD 2,664.10 per ounce.

Gold prices declined on Wednesday as the US dollar's strength and better-than-expected US retail sales data weighed down on bullion, Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said. The solid consumer spending, along with the US economic resiliency and warmer inflation data in recent months, implies that the Fed may stop its rate-cutting cycle at the January meeting, which acts as negative for precious metals, Gandhi said.

Meanwhile, silver traded flat at USD 30.92 per ounce in the global markets. "Gold and silver slipped under pressure from a strengthening US dollar, climbing Treasury yields, mixed US economic data and ceasefire updates," Manav Modi, Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said. Traders will focus on macroeconomic data such as the US housing, GDP and inflation, which could provide more insights on the trajectory of the gold and silver prices, Modi said.

According to traders, investors will be looking for clues about the outcome of the FOMC rate decision and focus on the Fed Chair Jerome Powell's commentary at the post-meeting news conference and the updated economic estimates. This, in turn, will influence the dollar and provide some impetus to the gold price, they said.

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