Extending fall for a third day in a row, gold prices dropped on Friday on weak global cues and lacklustre local demand. Firming of the US dollar amid positive US economic data numbers after the US Federal Reserve indicated further rate hikes, pushed the gold prices down, traders were quoted as saying in a report by Press Trust of India (PTI). Following the downtrend witnessed in gold rates, silver prices also dipped due to poor offtake by industrial units and coin makers.
Here are 5 things to know about Friday's gold, silver rates:
1. Gold rates dropped by Rs 250 to Rs 31,300 per ten gram at the bullion market Friday. In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 250 each to Rs 31,300 and Rs 31,150 per ten gram, respectively. It had lost Rs 175 in the previous two days.
2. "The market looks nervous ahead of next week's non-farm payrolls numbers. From here, possibly some bounce may come but the trend has turned bearish. Hence we recommend to go short on every bounce till Rs. 30,550 is not broken on the upside," said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities.
3. Fading demand from local jewellers and retailers at domestic spot market, too, fuelled the downtrend, traders said.
4. Global gold rates hit a fresh six-week low as the metal was on track for its longest monthly losing streak since January 1997, according to a report by news agency Reuters. Spot gold was flat at $1,182.48 as of 0736 GMT or 1:06 pm. The metal touched its lowest since August 17 at $1,180.34 an ounce earlier in the session, dipping further from a six-week low of $1,181.61 hit on Thursday.
5. Silver ready drifted down by Rs 450 to Rs 38,000 per kg and weekly-based delivery by Rs 110 to Rs 37,860 per kg. Silver coins, however, maintained a steady trend at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces. (With agencies inputs)
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