Gold tanks Rs 3,900 to Rs 1,25,800 per 10 grams

New Delhi: Gold prices plunged by Rs 3,900 to Rs 1,25,800 per 10 grams in the national capital on Tuesday, tracking a decline in global rates amid fading expectations of an interest rate cut by the US Federal Reserve next month.

The precious metal of 99.5 per cent purity tanked by Rs 3,900 to Rs 1,25,200 per 10 grams (inclusive of all taxes), according to the All India Sarafa Association.

Silver prices were also under pressure as the white metal tumbled by Rs 7,800 to Rs 1,56,000 per kilogram (inclusive of all taxes).

In the overseas markets, spot gold extended the losing run for the fourth consecutive session, slipping marginally lower at $4,042.32 per ounce. In the last four sessions, the precious metal dropped by $152.82, or 3.64 per cent, from $4,195.14 an ounce, recorded on November 12.

“Spot gold has extended its decline to the fourth straight day as doubts about the Fed rate cut linger amid hawkish comments from the Federal Reserve (Fed) officials.

“The rate cut probability in December has fallen to 41 per cent, down sharply from around 63 per cent as seen on November 5,” Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.

Spot silver snapped a three-day losing run by gaining 0.57 per cent to $50.49 an ounce.