New Delhi: Silver prices rebounded by Rs 1,800 to Rs 2.40 lakh per kg while gold prices dropped by Rs 650 to Rs 1.52 lakh per 10 grams in the national capital on Friday, according to the All India Sarafa Association.
The white metal prices increased by Rs 1,800, or nearly 1 per cent, to Rs 2,40,500 per kg (inclusive of all taxes) from Thursday's closing level of Rs 2,38,700 per kg.
However, gold of 99.9 per cent purity extended its losses for the third consecutive day, declining by Rs 650, or 0.42 per cent, to Rs 1,52,650 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,53,300 per 10 grams in the previous session.
Analysts said gold prices remain under pressure due to macroeconomic uncertainties and global cues favouring the US dollar.
"The precious metal complex continues to face stiff headwinds from the ongoing US-Israel-Iran conflict, which has moved capital into the haven dollar and crude oil," Dilip Parmar, Senior Research Analyst, HDFC Securities, said.
In the international market, spot silver slipped nearly 1 per cent to trade at USD 72.18 per ounce, while gold was trading 0.27 per cent higher at USD 4,663.54 per ounce.
Gold prices have shown a slight recovery amidst a backdrop of recent sell-offs and renewed investor interest, said Gaurav Garg, Research Analyst at Lemonn Markets Desk, adding that silver continues to face downward pressure from a stronger dollar.
"The recent volatility is attributed to a hawkish stance from the US Federal Reserve, which has kept interest rates steady but hinted at potential increases, creating a cautious sentiment in the market," he added.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the broader sentiment continues to remain subdued as key macro triggers continue to be unfavourable.
Interest rates are expected to stay elevated, while ongoing geopolitical tensions are keeping crude prices firm, sustaining inflation concerns and limiting upside in gold, he added.
On the outlook, gold is likely to remain weak with heightened volatility in the near term, Trivedi said.