Gold prices fall after 3 days but silver rates top Rs 40,000
Prices of gold of 99.9% and 99.5% purities today declined by Rs 145 each to Rs 32,690 and Rs 32,540 per 10 gram, respectively
New Delhi: Gold prices fell today, snapping three days of gains, amid a strengthening rupee and muted demand from jewellers. But silver rates continued their rising streak, topping the Rs 40,000 mark on increased demand from industrial units and coin makers. Gold rates today fell Rs 145 to Rs 32,690 per 10 gm at the bullion market while silver prices gained Rs 440 to Rs 40,140 per kg. Gold prices had gone up by Rs 565 in first three days of the New Year.
In Delhi, prices of gold of 99.9% and 99.5% purities today declined by Rs 145 each to Rs 32,690 and Rs 32,540 per 10 gram, respectively. Sovereign gold, however, remained unchanged at Rs 25,200 per piece of 8 gram.
Meanwhile, silver ready rose by Rs 440 to Rs 40,140 per kg and weekly-based delivery witnessed a marginal rise of Rs 71 to Rs 39,436 per kg. Silver coins, on the other hand, remained unchanged at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
The rupee today moved higher against the US dollar, which makes imports cheaper. The domestic price includes a 10% import tax.
Traders said that higher price is impacting demand in India. “In physical market demand is negligible. Retail consumers are not comfortable with higher prices,” said Chanda Venkatesh, managing director of CapsGold.
“Jewellers were postponing purchases. They are not sure whether prices will sustain at the higher level,” said a Mumbai-based dealer with a bullion importing bank.
In global markets, gold prices mostly higher with spot gold rate up 0.2% at $1,295.55 per ounce.
Gold traders will be looking for cues about interest rate hikes from a discussion between US Federal Reserve Chair Jerome Powell and former Fed Chairs Janet Yellen and Ben Bernanke today.
Analysts expect the volatility in global equity markets and concerns over slowing global growth to support gold prices.
“Concerns about tepid global economic growth and volatility in risk assets is likely to keep the safe-haven asset - gold - in flavour,” said Sugandha Sachdeva of Religare Broking.
(With Agency Inputs)
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