New Delhi: Gold prices fell by ₹ 170 to ₹ 31,480 per 10 grams on Friday on weak global cues and easing demand in local markets, reported PTI. Moreover, a recovery in the rupee from record lows against the US dollar also put pressure on domestic gold prices. Globally, gold prices recovered from six-month lows amid a weaker dollar, but analysts warned that more weakness was likely in the metal. In Delhi, gold of 99.9% and 99.5% purity softened by ₹ 170 each to ₹ 31,480 and ₹ 31,330 per 10 grams, respectively.
The precious metal had gained ₹ 80 on Thursday.
Silver prices also came under selling pressure and lost another ₹ 200 to ₹ 40,600 per kg owing to lower demand from industrial units and coin makers, added the report.
The Indian rupee strengthened against the US dollar, as a recovery in regional stocks was offset by continued anxiety over the US-China trade dispute and yuan weakness. The rupee opened at 68.66 a dollar. The rupee had on Thursday breached 69 level against the dollar to register a record low.
In global markets, spot gold rate moved up 0.2% to $1,250.53 an ounce by 3pm. On Thursday, it touched $1,245.32, its lowest since 13 December 2017. US gold futures edged up 0.1% at $1,251.80 an ounce.
Global gold prices are on track for a third straight weekly decline, having slipped 1.4% so far this week. Spot gold was down about 3.6% for the month, heading for its biggest monthly drop since November 2016.
The euro jumped more than a half cent after European Union leaders reached an agreement on migration. A stronger euro potentially boosts demand for gold by making dollar-priced bullion cheaper for European investors. The dollar index against a basket of six major currencies slipped 0.6%, having risen to about a one-year high on Thursday.
With inputs from Reuters