New Delhi: Gold prices today remained on a weak trend, falling below the 32,000 level. Gold rates fellby 50 to 31,950 per 10 gram, declining for the third consecutive day amid muted demand from local jewellers. Gold prices had declined by 150 in the past two days. Tracking gold, silver rates also dropped by 100 to 37,800 per kg. Prices of gold of 99.9% and 99.5% purity declined by 50 each to 31,950 and 31,800 per 10 gram respectively. Sovereign gold held flat at 24,800 for piece of 8 gram on scattered support.

Meanwhile, silver ready prices ended 100 lower at 37,800 per kg, while weekly-based delivery lost 183 at 36,586 per kg. Silver coins, however, were unaltered at 73,000 for buying and 74,000 for selling of 100 pieces.

The recent pullback in the rupee against the US dollar also put downward pressure on domestic gold prices. The rupee had risen 21 paise to end at 71.46 against the US dollar on Tuesday, its sixth straight session of gains. In the last six trading sessions, the rupee has gained 143 paise against the US dollar. A higher rupee reduces the imported cost of gold.

In global markets, gold prices were steady today amid weakness in dollar and equities. Spot gold was up 0.2% at $1,224.02 per ounce. The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.2%.

In global markets, gold prices are down about 10% since hitting a peak in April as investors bought the dollar with the US-China trade war unfolding against a background of higher US interest rates.

Gold traders will be keeping a close eye on the G20 leaders’ summit later this month in Argentina where US President Donald Trump is expected to meet with Chinese President Xi Jinping to discuss the bilateral trade dispute.

With Agency Inputs

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