Gold declines by Rs 1,200 to Rs 1.24 lakh/10g on weak global trends
New Delhi (PTI): Gold prices plunged by Rs 1,200 to Rs 1,24,100 per 10 grams in the national capital on Tuesday amid weak global cues after comments from several US Federal Reserve officials dampened expectations of another rate cut next month.
The precious metal of 99.5 per cent purity declined by Rs 1,200 to Rs 1,23,500 per 10 grams (inclusive of all taxes), extending its losses for the second straight session. It had settled at Rs 1,24,700 per 10 grams on Monday.
In the local bullion market, gold of 99.9 per cent purity had finished at Rs 1,25,300 per 10 grams in the previous market session.
"Gold fell on Tuesday, pressured by a strong US dollar and hawkish remarks from several Federal Reserve officials, who dismissed the possibility of another interest rate cut next month," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Silver also fell sharply by Rs 2,500 to Rs 1,51,500 per kilogram (inclusive of all taxes) on Tuesday from the previous close of Rs 1,54,000 per kg on Monday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 99.99, to a three-month high, which also put downward pressure on precious metals.
In the overseas markets, spot gold slipped by USD 7.84, or 0.2 per cent to USD 3,993.65 an ounce while silver was trading nearly 1 per cent lower at USD 47.73 per ounce.
Meanwhile, Fed Governor Lisa Cook, along with Mary Daly and Austan Goolsbee, highlighted labour market concerns but refrained from committing to another cut in December.
"Market attention now shifts to upcoming ADP employment and ISM PMI data, while easing safe-haven demand and China's withdrawal of gold tax incentives may weigh on sentiment," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
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K'taka remains central to Aequs' strategy, says min Patil amid row over firm's investment in TN
Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.
Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.
Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government had prior knowledge of the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.
