Gold prices had slipped Rs 100 on Monday.
Gold prices had slipped Rs 100 on Monday.

Gold prices slip today, silver bucks trend

Gold prices fell for the second consecutive day. On the other hand, silver prices gained 150 to 37,850 per kg

New Delhi: Gold prices slipped today on sluggish demand from local jewellers and weak overseas trend. In Delhi, gold of 99.9 per cent and 99.5 per cent purity shed 50 each to 31,200 and 31,050 per 10 gram, respectively, according to PTI. The precious metal had lost 100 on Monday. Sovereign however remained steady at 24,500 per piece of eight gram in limited deals. On the other hand, silver rose by 150 to 37,850 per kg and weekly-based delivery by 75 to 36,770 per kg, the report added. Silver coins however remained flat at 72,000 for buying and 73,000 for selling of 100 pieces.

In global markets, gold slipped as concerns over an escalating trade conflict between the US and China battered emerging market currencies and prompted investors to seek perceived safety in the dollar. A stronger dollar makes dollar-priced gold costlier for non-US investors.

The dollar index rallied as the public comment period on a US proposal for new tariffs on Chinese goods is set to end Thursday, after which Washington can follow through on plans to impose tariffs on $200 billion more of Chinese imports.

Emerging market currencies like the Argentine peso, Turkish lira, South African rand, Brazilian real, Indonesian rupiah and Indian rupee sank today on fears on fears of escalating trade conflict. The rupee today hit a low of 71.57 against the US dollar today. The US dollar’s status as the chief reserve currency makes it the primary beneficiary of trade conflicts.

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“As long as the dollar focus remains strong upside potential seems limited (for gold)," said Saxo Bank’s head of commodity strategy Ole Hansen.

In global markets, spot gold was down 0.4% to $1,195.26 an ounce. Gold has lost about 8% this year amid rising US interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in the dollar.

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(With Agency Inputs)