The rising rupee send gold prices in India tumbling over the week. On Saturday, gold rates extended decline to the fourth day a row, falling to 31,460 per 10 grams weak global cues. Silver prices too tumbled over the week. Gold of 99.9% and 99.5% purity fell to 31,460 and 31,310 per 10 grams, respectively. Over the four days, gold prices fell nearly 00 per 10 grams. On Saturday, silver prices tumbled 515 to 36,560 per kg on weak demand from industrial units and coin makers.

Five things to know about gold price fall

1) Traders attributed the sharp fall in domestic gold prices to a rising rupee. A higher rupee makes prices of dollar denominated imported gold cheaper. The rupee strengthened further by 27 paise to close at a four-month high of 69.58 against the US currency on Friday, extending gains for a fourth day. Cooling crude prices has helped rupee strengthen to from 74.48 a dollar on October to below 70 levels.

2) On the other hand, the fall in gold prices has given a boost to the domestic gold demand with jewellers replenishing inventories for the wedding season. “The appreciating (Indian) rupee has brought down prices. At this price level, jewellers and retail buyers are quite comfortable in making purchases," Reuters quoted a Mumbai-based gold wholesaler as saying.

3) Tracking gold prices, silver rates too have fallen sharply over the past four sessions. Silver prices fell a combined nearly Rs900 per kg over the four days as weak industrial demand also weighed on the metal. On Saturday, silver ready fell by Rs515 to Rs36,560 per kg, while weekly-based delivery declined by Rs459 to Rs35,147 per kg. Silver coins, however, ruled flat at Rs72,000 for buying and Rs73,000 for selling of 100 pieces.

4) Putting further pressure on domestic gold prices is weak global rates of the yellow metal. In global markets, gold prices traded between $1,210.65 and $1,230.07 over the past two weeks. A rebound in global stock markets and the dollar’s rise against a basket of other currencies put pressure on global gold prices.

5) Meanwhile, some analysts say that gold prices in global markets may be poised for a rally next year amid expectations of slower rate hikes by the US Fed. Chairman Jerome Powell earlier this week said that rates are “just below" estimates of the so-called neutral level, which markets took to mean a softer stance than previous comments. In global markets, a stronger dollar and rising borrowing costs have weighed on gold prices. Goldman Sachs analysts recommend bullion as one of the one of its top 10 trade ideas for commodities.