Gold prices fall sharply, silver rates dip1 min read . Updated: 02 Jan 2019, 02:04 AM IST
Prices of gold of 99.9% and 99.5% purity on Monday fell to ₹32,270 and ₹32,120 per 10 gram, respectively
New Delhi: Gold prices ended the 2018 on a weaker note when they plunged ₹ 370 to ₹ 32,270 per 10 gram at the bullion market. Traders attributed the fall in gold prices to muted demand from local jewellers. They also said that higher prices hurt domestic gold demand. Tracking gold, silver prices dropped ₹ 125 to ₹ 39,100 per kg on subdued fag-end demand from industrial units and coin makers. A stronger rupee also put pressure on domestic gold prices as imports become cheaper.
The rupee on Monday ended 18 paise higher at 69.77 per dollar but clocked a 9% fall during the year in one of the tumultuous years in the recent past. Traders also said that shifting of funds towards the rising equity market was another factor for decline in the gold prices.
In Delhi, prices of gold of 99.9% and 99.5% purity on Monday fell by ₹ 370 each to ₹ 32,270 and ₹ 32,120 per 10 gram, respectively. Sovereign gold on Monday held steady at ₹ 25,200 per piece of 8 gram. Silver ready also fell by ₹ 125 to ₹ 39,100 per kg, while weekly-based delivery was marginally down by ₹ 6 to ₹ 38,700 per kg.
Silver coins were, however, unchanged at ₹ 76,000 for buying and ₹ 77,000 for selling of 100 pieces.
For the year, the gold prices in India jumped by ₹ 1,870, or 6.15%, as compared with the price of ₹ 30,400 per 10 gram on December 30, 2017, primarily driven by a fall in rupee’s value against the US dollar. Silver, on the other hand, lost ₹ 880, or 2.2%, against ₹ 39,980 per kg as on December 30, 2017.
(With Agency Inputs)