Gold Prices Continue Downfall Amid Cautious Buying

Gold prices drifted further lower by Rs 95 to Rs 31,115 per 10 grams at the bullion market on Friday, extending its fall for the fourth straight day, tracking a weak global trend amid fall in demand from local jewellers, reported news agency Press Trust of India. However, silver held steady at Rs 40,030 per kg in scattered deals. Traders said sentiment remained bearish on the back of subdued global trend, as the dollar extended gains from the previous session when US inflation data and trade war concerns boosted demand for the greenback.    

Demand for physical gold in India picked up this week as prices fell to a five-month low, but buyers in other major centres in Asia awaited a bigger correction before placing orders, said traders and analysts, reported Reuters.  

“Prices have come down but the correction is not attracting investment demand. Prices need to fall to 28,000 rupees to bring back investors,” said Bachhraj Bamalwa, a bullion dealer based in the eastern city of Kolkata.

Here are key things to know about gold and silver prices today:

1. Globally, gold fell 0.47 per cent to $1,241.10 an ounce and silver 0.66 per cent at $16.82 an ounce in Singapore. Besides, fall in demand from local jewellers as well as retailers at the domestic spot market too weighed on prices.    

2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 95 each to Rs 31,115 an Rs 30,965 per 10 grams, respectively. It had lost Rs 440 in last three days.

3. Sovereign gold also slipped by Rs 100 to Rs 24,700 per piece of eight grams.    

4. On the other hand, silver ready ended flat at Rs 40,030 per kg, while weekly-based delivery edged up by Rs 35 to Rs 39,265 per kg.    

5. Silver coins, however, lacked necessary buying supports and plunged by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces. 

India’s gold imports fell for a sixth month in June to 44 tonnes as a drop in the rupee to record lows lifted local prices to a near 21-month high, curtailing demand. Trade deficit — the amount by which the cost of a country’s imports exceeds the value of its exports — data for the month of June is due later today.

Imports in July could rise to 60 tonnes if prices remain at current levels, the dealer at the private bank said.

(With PTI and Reuters Inputs)

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