Gold prices edge lower after rising for three days, silver follows
After gaining Rs 400 in past three sessions, gold prices today declined by Rs 30 to Rs 30,620 per 10 gram
New Delhi: Gold prices declined by Rs 30 to Rs 30,620 per 10 gram today, breaking a three-day rising streak, as demand from local jewellers eased amid weak global trend, reported PTI. Global gold prices declined today, after hitting a one-week high in the previous session, as the dollar gained over fears of another round of US tariffs on China and expectations of more US rate hikes. In Delhi, gold rates of 99.9% and 99.5% purity fell Rs 30 each to Rs 30,620 and Rs 30,470 per 10 gram, respectively. The metal had gained Rs 400 in the previous three days.
Following gold, silver prices also plunged by Rs 300 to Rs 37,800 per kg on reduced offtake by industrial units and coin makers, added the PTI report. Silver coins, however, continued to be enquired at last level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.
Global spot gold rate today was down 0.6% at $1,188.16 an ounce. Prices hit their highest since 13 August at $1,201.51 on Wednesday, but failed to hold the psychological $1,200 level after recovering from one and a half year lows touched last week. US gold futures were down 0.7 percent at $1,194.80. Gold has fallen nearly 13% since hitting a high of $1,365.23 in April.
The Indian rupee today weakened past 70 a dollar, tracking losses in its Asian peers after the US Federal Reserve’s meeting minutes continued to signal further rate hikes if US economy stays on track. The rupee opened at 70 a dollar, and was trading at 70.09, down 0.38% in afternoon trade. The dollar was up 0.2% against a basket of six major currencies, at 95.411.
US and China imposed fresh tariffs on each other’s goods in the middle of trade talks aimed at averting the worsening conflict between the world’s two biggest economies. Both nations started levying the taxes on $16 billion of imports from the other nation. China also said it would lodge a complaint about the new American tariffs to the World Trade Organization.
“People are worried about the fresh round of US tariffs on China and are buying the dollar, which is seen as a safe haven now,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
Global gold prices have fallen nearly 13% since hitting a high of $1,365.23 in April as investors increasingly flocked to the US dollar. “The fear of rate hikes is also pressuring gold. Despite Donald Trump’s recent attack on rising interest rates, we think the Fed may have its way,” Fung said.
With inputs from Reuters
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