Gold prices drop on reduced demand
Mumbai: Gold fell further by Rs80 to Rs28,670 per 10 grams at the bullion market on Friday following reduced demand from stockists and retailers despite a recovery overseas.
Silver continued its downtrend for the eighth straight session owing to persistent bouts of speculative selling amid subdued industrial offtake.
Standard gold (99.5 purity) fell by Rs 80 to close at Rs 28,670 per 10 grams from yesterday’s level of Rs 28,750. Pure gold (99.9 purity) also declined by a similar margin to end at Rs 28,820 per 10 grams as compared to Rs 28,900. Silver (.999 fineness) dipped by Rs 130 to finish at Rs 38,960 per kg as against Rs 39,090 yesterday.
At the global market, gold rose as investors judged that a sell-off sparked by a rise in US interest rates this week had run its course and the dollar weakened, making bullion cheaper for holders of other currencies.
Spot gold was up at $1,255.80 an ounce in early European trade, having hit $1,251.05, its weakest since 24 May.
US gold futures were higher at $1,257.2 an ounce. Silver was higher at $16.78 an ounce but was headed for a weekly decline, its biggest in six weeks.