Gold Prices Lose Four Day Rising Streak, Decline Rs 105 On Weak Demand, Global Cues

Gold prices moved lower by Rs 105 to Rs 32,370 per 10 grams at the bullion market Saturday, stopping its four-day upward streak. The precious metals had gained Rs 600 in the previous four sessions. The decline is attributed to the weak global cues amid easing demand from local jewellers at prevailing higher levels. Following gold prices, silver prices also declined and dropped by Rs 350 to Rs 41,200 per kg backed on reduced offtake by industrial units and coin makers. Gold had been trading in a range between about $1,310 and $1,360 since hitting a 1-1/2 year high in January but was pushed lower this month by a strengthening dollar and rising U.S. bond yields, which reduce the appeal of non-yielding gold.

Gold Prices Fall On Saturday. Five Things To Know

1. In New Delhi, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 105 each to Rs 32,370 and Rs 32,220 per 10 grams, respectively.

2. Bullion traders attributed the fall to weak trend overseas. Rise in US dollar against other currencies overseas has diminished the appeal of gold as a safe-haven investment. Besides this, fall in demand from local jewellers and retailers at existing higher levels at domestic spot market weighed on the gold prices.

3. Even in the international market, gold prices fell. Gold prices steadied on Friday after breaking above $1,300 an ounce in the previous session when U.S. President Donald Trump called off a meeting with North Korean leader Kim Jong Un, raising political tensions. At the time of closing, gold prices fell 0.22 per cent to $1,301.20 an ounce and silver by 0.99 per cent to $16.47 an ounce in New York in yesterday's trade.

4. Sovereign gold, however, remained unaltered at Rs 24,800 per piece of eight grams in limited deals. Following gold, silver ready plunged by Rs 350 to Rs 41,200 per kg and weekly-based delivery by Rs 495 to Rs 40,265 per kg. Silver coins, however, were unaltered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

5. As the US dollar falls, the currency in which international gold is priced, the gold prices tend to rise because the gold becomes expensive for the buyers who cut down on their consumption.
(With agency inputs)