Gold tumbles Rs 1,400 to Rs 1.49 lakh/10g as weak global cues dull bullion demand

New Delhi, Jul 7 (PTI) Gold prices fell sharply by Rs 1,400 to Rs 1.49 lakh per 10 grams in the national capital on Tuesday, and silver slipped Rs 200, as a stronger rupee and weak global trends weighed on the precious metals. The yellow metal of 99.9 per cent purity depreciated by Rs 1,400 to Rs 1,49,250 per 10 grams (inclusive of all taxes) from Monday's closing level of Rs 1,50,650 per 10 grams. Silver prices also eased by Rs 200 to Rs 2,39,800 per kilogram (inclusive of all taxes), after settling at Rs 2,40,000 per kg in the previous session. "Gold prices extended their decline on Tuesday as investors adopted a cautious stance before the release of the Federal Reserve's June meeting minutes and the second round of US-Iran peace talks, both of which are expected to provide fresh direction for gold prices," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said. Analysts said domestic bullion prices also came under pressure as the rupee appreciated sharply against the US dollar. "Gold prices extended their weakness after the rupee appreciated by 48 paise against the US dollar, which weighed on domestic bullion," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. The rupee strengthened after Saudi Arabia reduced crude oil prices for Asian buyers, easing concerns over India's import bill and adding pressure on bullion, he added. In the international market, spot gold fell USD 24.54, or 0.59 per cent, to USD 4,140.59 per ounce, and silver declined nearly 2 per cent to USD 60.89 per ounce. "Spot gold is trading lower in the overseas trade as crude oil prices have staged a minor rebound following attacks on shipping in and around the Strait of Hormuz," Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said. He said the attack has renewed concerns over the safety of vessels transiting through the Persian Gulf, lifting crude oil prices by more than 1 per cent and pushing US Treasury yields and the dollar index higher, which in turn pressured precious metals. Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said: "Traders are awaiting the Federal Open Market Committee meeting minutes, the ADP report, initial jobless claims and next week's US inflation data for further cues". On the outlook, Praveen Singh said precious metals are likely to remain range-bound in the near term, though a positive undertone could return if geopolitical tensions in West Asia remain contained. PTI HG HG BAL BAL