New Delhi: Gold prices fell today after two days of gains, amid a weak global trend. Gold rates declined by 80 to 32,610 per 10 grams amid easing demand from local jewellers. Silver prices also followed suit and dropped by 240 to 39,300 per kg on poor offtake by industrial units. Gold prices had risen by 60 in the past two days on the back of pick-up in demand on the occasion of Dhanteras. But in the absence of strong follow-up buying post Dhanteras from jewellers, gold prices failed to gain support at higher levels.

In Delhi, gold of 99.9% and 99.5% purity traded lower by 80 each to 32,610 and 32,460 per 10 grams respectively. Sovereign gold, however, held steady at 24,900 per piece of 8 grams. Silver ready prices today fell by 240 to 39,300 per kg and weekly-based delivery by 193 to 38,444 per kg. Silver coins, however, remained unalatered at 76,000 for buying and 77,000 for selling of 100 pieces.

In global markets, gold prices remained in a tight range ahead of the US midterm election results. Spot gold was largely unchanged at $1,231.20 per ounce while US gold futures were up 0.1% at $1,233.8 per ounce. Analysts said that investors are waiting for more clarity on the US elections. “They’re possibly waiting to get an idea of how the dollar will move, the US markets will get impacted," said Hareesh V, head of commodity research at Geojit Financial Services.

Bullion traders are also looking ahead Federal Reserve meeting later this week. “There is an expectation of another rate hike from the Fed... But whatever rate hike is going to come has already been priced in gold," said Kunal Shah, head of research at Nirmal Bang Commodities. Higher US interest rates tend to boost the dollar, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.

(With Agency Inputs)

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