Gold prices fall by Rs115 after safe haven appeal hit by strong dollar
New Delhi: Gold prices came under pressure from a rising dollar with a fall of Rs115 to Rs30,135 per 10 grams on Monday due to tepid demand from local jewellers. Silver too declined by Rs450 to Rs40,050 per kg, following reduced offtake by industrial units and coin makers.
The fall was in line with a weak trend overseas as the strength in the dollar dented demand for the precious metal. The dollar firmed up after upbeat US economic data bolstered prospects of further interest rate hike by the Federal Reserve and diminished appeal of the precious metal.
A fading demand from local jewellers and retailers and shifting of funds towards rising equity market came as a drag. Globally, gold rates fell 0.03% to $1,269 an ounce in Singapore.
In the national capital, gold of 99.9% and 99.5% purity came down by Rs115 each to Rs30,135 and Rs29,985 per 10 grams, respectively. Sovereign, however, remained unchanged at Rs24,700 per piece of eight grams in sparse deals.
Following gold, silver ready dropped by Rs450 to Rs40,050 per kg and weekly-based delivery by Rs490 to Rs39,135 per kg. Silver coins too plunged by Rs1,000 to Rs73,000 for buying and Rs74,000 for selling of 100 pieces.