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Business News/ Home-page / Gold prices fall sharply today, silver rates slump

Gold prices fall sharply today, silver rates slump

Prices of gold of 99.9% and 99.5% purity today declined ₹290 each to ₹31,560 and ₹31,410 per 10 grams

Gold prices today fell sharply to Rs 31,560 per 10 grams today.Premium
Gold prices today fell sharply to Rs 31,560 per 10 grams today.

New Delhi: Muted demand from jewellers and weak global cues sent domestic gold prices sharply lower today. Gold prices today fell 290 to 31,560 per 10 grams. Tracking gold, silver rates too slumped 200 to 37,100 per kg. Prices of gold of 99.9% and 99.5% purity dropped by 290 each to 31,560 and 31,410 per 10 grams, respectively. Sovereign gold prices fell 100 to 24,700 per piece of eight gram. Silver ready fell by 200 to 37,100 per kg while weekly-based delivery lost 253 at 35,782 per kg while silver coins, too, plunged by 1,000 to 72,000 for buying and 73,000 for selling of 100 pieces.

A recent rebound in the rupee has helped bring down gold prices in India. Higher value of the rupee against the US dollar helps bring down the imported cost of gold. The rupee traded at 70.60 levels against the US dollar today.

In global markets, gold prices trended lower amid robust dollar, which gained after a senior US Federal Reserve official reaffirmed the need for a further increase in interest rates, making bullion more expensive for holders of other currencies. Spot gold was little changed at $1,213.91 per ounce while US gold futures were down about 0.1 percent at $1,214. Prospects of higher US interest rates are negative for dollar-priced gold as they raise the cost of holding the bullion.

The next trigger for gold traders will be Fed Chairman Jerome Powell’s speech later today and the minutes from the Fed’s November 7-8 meeting on Thursday. The dollar index, a gauge of its value versus six major peers, held steady at 97.39, sitting just below this year’s high of 97.69.

Meanwhile, latest data released from mutual fund industry body Amfi showed that gold exchange-traded funds (ETFs) continued to lose steam, with investors pulling out 290 crore during the April-October period of the current fiscal.

In comparison, 14 gold-linked ETFs had witnessed a withdrawal of 422 crore in the first seven months of 2017-18. The assets under management (AUM) of gold funds went down by 8% to 4,621 crore at the end of October this year from 5,017 crore a year ago. Gold ETFs are passive investment instruments that are based on price movements and investments in the metal.

Financial planners say that ideally investors should look to allocate 5-10% of the portfolio towards gold, which works as a portfolio hedge and helps reduce overall portfolio volatility.

With Agency Inputs

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Published: 28 Nov 2018, 04:57 PM IST
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