Gold falls to Rs 1,25,900/10 g in Delhi as trade optimism dulls safe haven demand
New Delhi (PTI): Gold prices declined by Rs 700 to Rs 1,25,900 per 10 grams in the national capital on Monday, tracking weak global trends as easing US-China trade tensions dented safe-haven demand.
According to the All India Sarafa Association, the yellow metal had climbed Rs 1,000 to Rs 1,26,600 per 10 grams on Saturday.
Gold of 99.5 per cent purity also fell by Rs 700 to Rs 1,25,300 per 10 grams (inclusive of all taxes). It had settled at Rs 1,26,000 per 10 grams in the previous session.
"Gold resumed trading on a weaker note on Monday as signs of easing US-China trade tensions have increased investors' interest in riskier assets, creating a negative impact on precious metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
In the local bullion market, silver prices slumped sharply by Rs 4,250 to Rs 1,51,250 per kg (inclusive of all taxes) on Monday. The white metal had ended at Rs 1,55,500 per kg, up by Rs 2,900 on Saturday.
On Sunday, top economic officials from Washington and Beijing agreed on the framework of a potential trade deal, which is expected to be discussed when US President Donald Trump meets his Chinese counterpart, Xi Jinping, in South Korea later this week.
In the overseas markets, spot gold extended the losses for the second straight day, by dropping USD 97.86, or 2.38 per cent to USD 4,015.55 per ounce.
Gandhi said investors continued to take profits and withdraw from gold-backed exchange-traded funds, adding further pressure on the bullion prices.
"We believe bullion will remain under selling pressure in the short term, and the downside will intensify once spot gold slips below the USD 4,000 per ounce level," he noted.
Spot silver was quoted 2.03 per cent lower at USD 47.60 an ounce in overseas markets.
Investors are shifting their focus to central bank meetings later this week.
"The US Federal Reserve is largely anticipated to cut interest rates by 25 basis points after weaker than expected inflation data while the European Central Bank and Bank of Japan are expected to maintain current policy rates," Renisha Chainani, Head - Research at Augmont, said.
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Have no personal involvement in Cong’s action against some minority leaders: Shivakumar
Bengaluru (PTI): Karnataka Deputy Chief Minister D K Shivakumar on Friday said he has no personal involvement in action taken against certain Congress leaders from the minority community following allegations of an internal conspiracy during the recently held Davanagere South bypolls.
He clarified that the decisions were taken by the party high command based on available reports.
Asserting that party discipline is of utmost importance, Shivakumar, who is also the Karnataka Pradesh Congress Committee (KPCC) president, sought to downplay concerns that action against minority leaders may send the message that “Muslims are being targeted.”
“I don’t have any personal involvement in this. Whatever decisions are taken are made by the party leadership. The party has its own reports. Decisions regarding MLAs or MLCs cannot be taken at the state level without instructions from Delhi,” he said.
Speaking to reporters, he added, “People may blame me; I am not concerned. Everyone must function in accordance with party discipline.”
Responding to concerns within sections of the party that recent actions may convey the impression that minority leaders are being targeted, he said the Congress exists for the welfare of Scheduled Castes, Scheduled Tribes, minorities, backward classes, farmers, and all sections of society.
The Congress has suspended MLC K Abdul Jabbar from primary membership and relieved another MLC, Naseer Ahmed, from the post of Chief Minister’s political secretary.
The action followed allegations by a group of Muslim leaders that certain party members conspired to defeat the official candidate in Davanagere South.
Following the action, speculation has emerged that Housing Minister B Z Zameer Ahmed Khan may also face disciplinary measures during the next cabinet reshuffle.
The three leaders had reportedly sought a Muslim candidate for the Davanagere South bypoll ticket, which the party instead allotted to the late MLA Shamanur Shivashankarappa’s grandson, Samarth Mallikarjun.
They were also said to have not actively participated in the campaign.
Shivakumar also rejected claims of factionalism within the ruling party amid speculation that leaders close to Chief Minister Siddaramaiah were being targeted.
Naseer Ahmed and Zameer Ahmed Khan are considered close to the CM.
Rejecting allegations of factionalism within the party, Shivakumar said, “We speak to each other every day. It is the media that creates divisions. Where is my faction? Has anyone put up a board saying they belong to the Siddaramaiah faction? Have I put up any such board?”
“All 139 legislators are my people, and they are all Siddaramaiah’s people as well. Everyone belongs to the Congress,” he added, saying there are no factions within the party and that such claims are media-driven.
Public Works Department (PWD) Minister Satish Jarkiholi met Shivakumar on Friday, a day after expressing concerns that disciplinary action against minority leaders may send the wrong message.
Shivakumar said he discussed with Jarkiholi the need to decongest Bengaluru traffic by diverting vehicles entering the city from state and national highways, along with party-related issues.
“We also discussed political matters in the interest of the party and the need to work together,” he said.
Later, speaking to reporters, Jarkiholi said he discussed with Shivakumar the issue of withdrawing Jabbar’s suspension. He said he will also visit New Delhi next week to meet the high command and discuss state developments.
“Jabbar’s suspension was discussed (with Shivakumar). It should be withdrawn. Let’s issue him a notice and allow him to reply. Then let’s send the report to the high command and seek their approval. High command approval is necessary because the instructions came from there. It may take some time,” he said.
Stating that he met the KPCC chief for “damage control,” the minister said, “We have tried to convince him. Sometimes certain decisions happen that need rectification.”
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