Gold prices fall for first time in 4 days, silver rates drop
Gold rates of gold 99.9% and 99.5% purity today fell by Rs 110 each to 32,540 and Rs 32,390 per 10 grams
New Delhi: Gold prices today declined, snapping a three-day gaining streak amid muted demand from jewellers and weak global prices. Silver rates too edged lower. Gold prices today fell Rs 110 to Rs 32,540 per 10 gram at the bullion market. Gold rates had risen Rs 550 in past three days. Silver rates slipped Rs 25 to Rs 38,550 per kg on weak demand from coin makers and industrial units. In Delhi, prices of gold 99.9% and 99.5% purity fell by Rs 110 each to 32,540 and Rs 32,390 per 10 grams, Press Trust of India reported.
Sovereign gold prices, however, today held steady at Rs 25,000 per piece of 8 gram. Silver ready rates fell by Rs 25 to Rs 38,550 per kg, while weekly-based delivery was marginally up by Rs 22 to Rs 38,181 per kg. Silver coins, however, remained unchanged at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.
In global markets, gold prices inched lower weighed down by a stronger dollar. Spot gold prices were down 0.1% at $1,242.10 per ounce. The dollar held near a one-month high against its peers, supported by a rebound in US government bond yields and weakness in British pound arising from uncertainty about Brexit.
Gold is under pressure due to an appreciation in the dollar index, said Amit Kumar Gupta, portfolio management services head at Adroit Financial Services.
Gold traders will closely watch the US Federal Reserve’s next move. The Fed is widely expected to raise rates at its December 18-19 meeting, but the market is focusing on how much further it might lift rates next year, after recent comments by Fed members to decide the monetary policy based on data have been taken as a signal for lower rate hikes in 2019. US President Donald Trump urged the Federal Reserve not to proceed with an expected interest-rate increase when it meets next week.
Technical analyst Wang Tao said that gold could retest a resistance at $1,253 per ounce, a break above which could lead to a gain into a range of $1,258-$1,266.
Coming back to India, gold exchange-traded funds (ETFs) saw a net inflow of Rs10 crore in November after witnessing pull-out in past several months.
With Agency Inputs
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