Gold prices drop on weak global cues, low demand
New Delhi: Gold prices fell by Rs50 to Rs30,850 per 10 gram at the bullion market on Saturday on weak cues from overseas markets and fall in demand from local jewellers at domestic spot market. Silver followed suit and eased by Rs200 to Rs41,400 per kg due to reduced offtake by industrial units and coin makers.
Traders said a weak trend overseas, shrugging off North Korea’s latest missile launch over Japan with strong US inflation data raising hopes of another interest rate hike, mainly kept gold prices lower. Besides, fading demand from local jewellers and retailers at domestic spot markets due to ongoing inauspicious fortnight of “Sharadh”, too weighed on the prices, they added.
Globally, gold prices fell 0.74% to $1,319.20 an ounce and silver by 1.27% to $17.54 an ounce in New York in Friday’s trade.
In the national capital, gold of 99.9% and 99.5% purity declined further by Rs50 each to Rs30,850 and Rs30,700 per 10 gram respectively. It lost Rs100 on Friday. Sovereign, however, remained flat at Rs 24,700 per piece of eight gram.
Tracking gold, silver ready fell by Rs200 to Rs41,400 per kg while weekly-based delivery lost Rs305 to Rs40,815 per kg. On the other hand, silver coins remained unaltered at Rs74,000 for buying and Rs75,000 for selling of 100 pieces.