Gold weakened by Rs 700, silver fell by Rs 2000

Gold plummeted by Rs 700 to Rs 73,500 per 10 grams in the national capital's bullion market on Monday amidst a drop in prices of the yellow metal as well as other precious metals in the international markets, said the All India Sarafa Association. The yellow metal had closed at Rs 74,200 per 10 grams in the previous trading session on Friday.

The silver price, tracking gold, tumbled by Rs 2,000 to close at Rs 83,800 per kg owing to weak demand from industrial units and coin makers, according to the All India Sarafa Association. The precious metal had settled at Rs 85,800 per kg in the previous trade.

Meanwhile, gold of 99.5 percent purity also fell by Rs 500 to Rs 73,350 per 10 grams against its previous close at Rs 73,850. In Mumbai, traders claim, the drop in gold prices is due to a lack of demand for gold from local jewelers against a weak trend overseas.

Globally, Comex gold was trading 0.07 percent lower at $2,522.90 per ounce. HDFC Securities Senior Analyst (Commodities) Saumil Gandhi said, "Gold declined on Monday as mixed employment data in the US has raised doubts over the size of the Federal Reserve's upcoming interest rate cut."

According to Manav Modi, Senior Analyst (Commodity Research), Motilal Oswal Financial Services, gold prices declined at the end of last week, retreating from record levels after mixed employment data and comments from some Federal Reserve officials that raised doubts about interest rate cuts at the next meeting.

Modi said traders are waiting for this week's US macroeconomic data reports, including inflation and producer price index (PPI), to anticipate the Federal Reserve's next move on interest rates. However, silver prices in the international markets are trading marginally higher at $28.44 an ounce.