New Delhi: Gold prices fell further 20 to 31,400 per 10 grams on Monday following weak global cues and slowing demand from local jewellers, reported PTI. In global markets, gold prices edged lower as the US dollar firmed after US inflation data supported the US Federal Reserve’s outlook for future interest rate increases. In Delhi, gold rate of 99.9% and 99.5% purity declined by 20 each to 31,400 and 31,250 per 10 grams, respectively. The precious metal had lost 230 in the previous two sessions.

Global spot gold rate was 0.3% lower at $1,248.98 an ounce. US gold futures for August delivery were down 0.3% at $1,250.20 an ounce.

The Indian rupee on Monday erased all the morning gains and was trading lower against the US dollar, tracking losses in global equity and currency markets. So far this year, the rupee has weakened 6.67%, while foreign investors have sold $875 million and $6.11 billion in equity and debt markets respectively.

Silver also declined by 250 at 40,350 per kg owing to reduced offtake by industrial units and coin makers, added the report.

The US dollar strengthened against a basket of currencies and extended its gains against the yen to hit a fresh six-week high of 111.06 yen, supported by the relative strength of the US economy and on prospects of further rate hikes from the Federal Reserve. US consumer prices accelerated in the year to May, with a measure of underlying inflation hitting the Federal Reserve’s 2% target for the first time in six years, data showed on Friday.

With inputs from Reuters