Gold prices at 7-month low on weak global cues, silver drops
Mumbai: Snapping its three-day winning spree, gold prices on Thursday slipped to its over seven-month low at the domestic bullion market in Mumbai on reduced offtake from stockist and investors amid driven by weaker global cues. Besides, lower local buying interest assisted the fall.
Silver too dropped following speculative selling and lackluster industrial demand.
Standard gold (99.5 purity) dipped by Rs415 to close at Rs28,980 per 10 grams from Wednesday’s level of Rs29,395. The level not been seen since 11 April 2016. Pure gold (99.9 purity) also fell by a similar margin to finish at Rs29,130 per 10 grams compared Rs29,545 on Wednesday.
Silver (.999 fineness) slumped by Rs435 per kg to end at Rs41,340 as compared to Rs41,775 previously.
Globally, gold prices fell as the dollar strengthened on growing expectations of a Federal Reserve rate hike in December following positive US economic data.
Spot gold was down 0.2% at $1,185.55 an ounce in early European trade. It dropped 2% in the previous session to touch its lowest in 9-1/2 months at $1,181.45. US gold futures eased 0.3% to $1,185.60 per ounce. Spot silver fell 0.6% to $16.26 an ounce.