Gold price slipped under modest selling pressure for the week
New Delhi-India (Sept 17) Gold slipped under modest selling pressure for the week due to subdued buying interest from jewellery stockists and retailers in the face of sluggish overseas cues.
Although gold maintained a very low tone globally, domestic buyers preferred to stay on the sidelines expecting some major corrections against the backdrop of Federal Reserve's impending rate hike.
Demand for gold in India remained lacklustre this week as higher prices hampered consumer purchases, though discounts narrowed due to a correction in the spot rate. Silver also succumbed to heavy unwinding from speculative traders and savvy traders.
The white-metal weekly-based delivery dipped below the psychologically crucial Rs 46,000-mark. The bullion market was closed on Tuesday on account of "Bakri Id".
In worldwide trade, Gold futures finished at their lowest level in almost three months yesterday, logging a seventh drop in eight sessions to finish the week with a nearly 2 per cent loss as the US dollar climbed sharply in the run up to key central bank policy meetings next week.
A report on inflation muddied the short-term fate for US interest rates ahead of separate meetings of the Federal Reserve and Bank of Japan. NY Gold lost 1.8 per cent for the week, while silver went down around 2.6 per cent for the week.
In New York Comex trade, gold for December delivery declined to close at USD 1,310.20 an ounce from last weekend's level of USD 1,334.50 and silver for December contract moved down to USD 18.862 an ounce from USD 19.368 earlier.
On the domestic front, standard gold (99.5 purity) resumed lower at Rs 31,155 per 10 grams as compared to last Friday's closing value of Rs 31,175 and moved in a range of Rs 31,180 and Rs 30,995 before settling at Rs 31,050, revealing a loss of Rs 125 per 10 grams, or 0.40 per cent.
Similarly, pure gold (99.9 purity) also commenced lower at Rs 31,305 per 10 gram from previous closing level of Rs 31,325, and hovered in a range of Rs 31,330 and Rs 31,145 before closing at Rs 31,200 showing a loss of Rs 125 per 10 gram, or 0.40 per cent.
Silver ready (.999 fineness) sharply lower at Rs 45,725 per kilo from preceding weekend's close of Rs 46,510, and drifted further to Rs 45,335 before settling at Rs 45,585, revealing a loss of Rs 925 per kilo, or 1.99 per cent.