Gold prices fall after 3 days, silver rates surge
Prices of gold of 99.9% and 99.5% purity today fell Rs 150 each to Rs 32,630 and Rs 32,480 per 10 grams respectively
New Delhi: Gold prices today eased from their six-year highs, snapping their three-day rising streak. Muted demand from jewellers and weak global prices kept pressure on domestic gold prices. Gold rates today fell Rs 150 to Rs 32,630 per 10 grams. But silver prices surged today, boosted by higher demand. Silver rates today rose by Rs 310 to Rs 39,500 per kg. In Delhi, gold of 99.9% and 99.5% purity fell Rs 150 each to Rs 32,630 and Rs 32,480 per 10 grams respectively, Press Trust of India reported. Gold prices had gained Rs 230 in the last three days.
Sovereign gold prices, however, remained flat at Rs 24,900 per piece of 8 gram. Silver ready rebounded by Rs 310 to Rs 39,500 per kg and weekly-based delivery by Rs 418 to Rs 38,546 per kg. Silver coins, however, were unaltered at 76,000 for buying and Rs 77,000 for selling of 100 pieces.
Traders said that festive season demand for gold is likely to be hit from higher prices.
Demand for gold coins and bars, also known as investment demand, could also be hit due to higher prices. On Thursday, gold prices rose Rs 130 to Rs 32,780 per 10 grams, the highest since November 29, 2012, when it hit Rs 32,940 per 10 grams.
Gold prices in India have rallied this year as the rupee has fallen nearly 13% against the US dollar, making purchases of commodities denominated in the greenback more expensive. In global markets, gold prices have seen big swings this year. From $1,366.07 an ounce in January, they fell to as low as $1,159.96 in August amid a strengthening dollar and rate hikes by the US Federal Reserve.
A stronger dollar hurts gold prices by making it more expensive for buyers with other currencies. Higher interest rates also make non-interest yielding gold less attractive. Currently, global gold prices are hovering around $1,220 an ounce.
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