Gold prices fall for third day, silver rates drop
Gold prices today declined Rs 65, bring its combined losses to nearly Rs 400 over past three days.
New Delhi: Gold prices fell today for the third day in a row, declining a combined Rs 375 per 10 grams over three days. Gold rates today fell by Rs 65 to Rs 31,475 per 10 grams. Appreciating rupee and weak global prices have pushed domestic gold prices lower. Tracking gold, silver prices lost Rs 85 to Rs 37,075 per kg on weak demand from industrial units and coin makers. Gold of 99.9% and 99.5% purity fell further by Rs 65 each to Rs 31,475 and Rs 31,325 per 10 gram, respectively. Sovereign gold, however, held steady at Rs 24,700 per piece of 8 gram.
Silver ready fell by 85 to Rs 37,075 per kg, and weekly-based delivery declined by Rs 258 to Rs 35,606 per kg. Silver coins, however, were steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.
The rupee today rose to 69.58 against the dollar, making the cost of imported gold cheaper. The rupee had jumped 77 paise to 69.85 per US dollar on Thursday.
In global markets, gold prices edged lower today as the dollar firmed ahead of an expected meeting between US President Donald Trump and China’s President Xi Jinping at the G20 summit. Spot gold prices were down 0.2% at $1,221.80 per ounce while US gold futures inched 0.2% lower to $1,221.70 an ounce.
Craig Erlam, an analyst at OANDA, said that if gold prices break below $1,200, $1,180 levels would come into focus. On the higher side, gold has resistance at $1,240 and then at $1,260, the analyst said.
Meanwhile, data from domestic mutual fund body showed that gold exchange-traded funds (ETFs) continued to lose steam during the April-October period of this year. Investors pulled out Rs 290 crore during first half of the fiscal. The assets under management (AUM) of gold funds also went down by 8% to Rs 4,621 crore at the end of October this year from Rs 5,017 crore a year ago.
Financial planners say that investors should look to allocate 5-10% of the portfolio towards gold, which works as a portfolio hedge and helps reduce overall portfolio volatility.
With Agency Inputs
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