Gold Rates Edge Lower On Weak Global Cues: 5 Things To Know

Tracking a weak trend overseas amid subdued demand from local jewelers, gold prices fell by Rs 30 to Rs 31,870 per 10 gram at the bullion market on Monday, reported Press Trust of India (PTI). In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined by Rs 30 each to Rs 31,870 and Rs 31,720 per 10 gram, respectively. Silver rates, too, slumped by Rs 500 to Rs 39,300 per kg due to reduced offtake by industrial units and coin makers. 

Here are 5 things to know about gold prices, silver rates on Monday:

1. Muted demand from local jewellers and weak trend in the global markets, after dollar strengthened as China's central bank eased its domestic policy, reduced appeal for the precious metals as a safe haven, led to the decline in gold prices, traders said.

2. Sovereign gold remained flat at Rs 24,600 per piece of 8 gram.

3. Silver ready plunged by Rs 500 to Rs 39,300 per kg and weekly-based delivery by Rs 420 to Rs 38,555 per kg. Silver coins maintained a steady trend at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces. 

4. Globally, gold price fell by 0.66 per cent to $ 1,197.50 an ounce and silver by 0.11 per cent to $ 14.48 an ounce in Singapore. Gold has fallen more than 12 per cent from a peak in April largely due to the dollar's strength, which reflects a vibrant US economy, rising US interest rates and fears of a global trade war, reported news agency Reuters.

5. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.