Gold prices today remain near 6-year high, silver edges lower
After hitting a six-year high of Rs 32,625 on Thursday, gold prices have slightly edged lower amid tepid demand at higher prices.
New Delhi: Gold prices today remained flat amid tepid demand from jewellers. Weak overseas trend also kept the sentiment muted. Gold rates today stood at Rs 32,550 per 10 grams at the bullion market, near six-year highs of Rs 32,625, hit on Thursday. Traders said that the recent rally in domestic gold prices has hit demand. In Delhi, gold of 99.9% and 99.5% purity remained flat at Rs 32,550 per 10 grams and Rs 32,400 per 10 grams, respectively. Sovereign gold, however, rose by Rs 100 to Rs 24,800 per piece of eight grams.
Silver rates today, however, fell by Rs 100 to Rs 39,500 per kg, from Rs 39,600 per kg on Saturday. Silver ready fell by Rs 100 to Rs 39,500 per kg. On the other hand, silver weekly based delivery rose marginally by Rs 23 to Rs 38,733 per kg. Besides, silver coins, were at Rs 750 and Rs 760.
Globally, gold prices stood at $1,230.80 an ounce in New York.
Higher global gold prices, wedding and festive season demand and turmoil in global financial markets had pushed domestic gold prices to six-year high last week. A depreciating rupee, that made imports costlier, also added to the uptrend in the gold prices.
But higher prices hurt domestic gold demand despite the approaching festival and wedding season, traders said. “Consumers are struggling to adjust to higher prices,” said Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai. Demand in India, the second biggest gold consumer after China, usually picks up towards the end of the year going into the wedding season and major festivals such as Diwali and Dussehra, when buying the precious metal is considered auspicious.
Higher gold prices are also expected to hit demand on Dhanteras, which is considered to be an auspicious day for buying gold, silver and other valuables. Last year, gold prices were ruling a little over Rs 30,000 per 10 gram during Dhanteras.
Meanwhile, analysts forecast global gold prices to edge higher from current levels. Spot gold will average $1,273 an ounce in 2018 and $1,300 in 2019, amid growing economic and political risks, according to a Reuters poll of 39 analysts and traders conducted this month.
With Agency Inputs
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