Prices of precious metals plunged on Thursday amid a stronger rupee and weak global trends, according to HDFC Securities.
In opening trade on Thursday, the Indian rupee advanced 22 paise to 71.48 per US dollar as global markets stabilised after the US and Iran toned down their war rhetoric.
Gold prices fell by Rs 766 to Rs 40,634 per 10 gram in the national capital. Silver followed the trend and tumbled Rs 1,148 to Rs 47,932 per kg from Rs 49,080 per kg in the previous trade.
The yellow metal had closed at Rs 41,400 per 10 gram on Wednesday.
“Gold traded lower as the US and Iran stepped back from a deeper military conflict. De-escalation resulted in buying in riskier assets like global equities,” HDFC Securities Head – Advisory (PCG) Devarsh Vakil was quoted as saying by PTI.
On the international platform, both the precious metals depicted a weak trend. Gold was trading lower at USD 1,546 per ounce and silver was at USD 17.93 per ounce.
“Weakness in international gold prices and stronger rupee weighed on domestic gold prices. Near-term focus will remain on marriage season retail demand,” he added.
(With input from agencies)