Gold falls Rs 2,700 to Rs 1.55 lakh per 10g

Precious metals took a beating on Friday, with gold prices declining by Rs 2,700 to Rs 1.55 lakh per 10 grams and silver tumbling by Rs 10,000 to Rs 2.34 lakh per kg in the national capital.

Gold of 99.9 per cent purity depreciated by Rs 2,700 to Rs 1,55,900 per 10 grams (inclusive of all taxes), according to local traders. It had closed at Rs 1,58,600 per 10 grams on Thursday. Silver also declined Rs 10,000 to Rs 2,34,600 per kg (inclusive of all taxes) against the previous close of Rs 2,44,600 per kg.

Traders said the sharp correction in domestic bullion prices reflected selling pressure in the local market after the recent rally, with both precious metals pulling back.

The domestic selloff came despite gains in global markets, where spot gold rose $ 49.82, or 1.15 per cent, to $4,366.58 per ounce and silver gained 2 per cent to $64.77 per ounce.

Gold prices in the overseas trade recovered slightly but remained under pressure and are on track for a third consecutive weekly decline, said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities. Elevated crude oil prices have revived inflation concerns, while higher Treasury yields and rising rate-hike expectations continue to weigh on assets such as gold, he added.