New Delhi: Gold prices fell today on muted demand from local jewellers and a strengthening rupee. Gold rates declined by 235 to 32,015 per 10 grams. Silver rates today were however steady at 37,900 per kg. The rupee today jumped against the US dollar, closing at 71.92 against the US dollar. The rupee had gained 34 paise to close at a two-month high of 71.97 against the US dollar yesterday. A jump in the value of the rupee against the US dollar makes import of the precious metal cheaper.

In Delhi, gold prices of 99.9% and 99.5% purity dropped by 235 each to 32,015 and 31,865 per 10 gram, respectively. The precious metal had risen 350 yesterday. Sovereign gold, however, remained flat at 24,800 per piece of 8 gram.

Silver ready however ended steady at 37,900 per kg on scattered demand, while weekly-based delivery rose by 147 to 36,818 per kg on speculative buying. Silver coins continued to be traded at previous level of 73,000 for buying and 74,000 for selling of 100 pieces.

Traders said higher global gold prices helped limit the fall in domestic prices. In global markets, gold rose to a one-week high as the dollar softened. Spot gold was up 0.2% at $1,215.33 per ounce.

“Investors are a bit more interested in gold ... the momentum is up, we may go to $1,250 in the short term," Reuters quoted an ABN AMRO analyst as saying.

The dollar inched down to 96.76 against a basket of major currencies after British Prime Minister Theresa May clung to her Brexit plan despite the resignations of senior ministers. A weaker dollar makes bullion cheaper for holders of other currencies.

The US dollar has emerged as a dominant safe-haven asset this year on the back of a US-China trade dispute, denting the appeal of gold, which has fallen 11%. But gold prices have rallied this year in India as the drop in rupee’s value has increased the imported price of gold.

With Agency Inputs

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