Gold price weakens on low demand, global cues in Delhi

New Delhi-India (Nov 25)  Gold prices declined by Rs 30 to Rs 26,900 per ten grams at the bullion market in Delhi today owing to slackened demand from jewellers and retailers at prevailing levels amid a weak global trend.

Silver, however, maintained its upward march for the fourth straight day and gained another Rs 375 to trade at Rs 37,025 per kg on increased offtake by industrial units and coin makers.

Traders said besides easing demand from jewellers and retailers at existing levels, a weak global trend mainly influenced sentiments here.

Gold in New York, which normally sets price trend on the domestic front, dropped 0.2 per cent to USD 1,196.60 an ounce in yesterday’s trade on signals that US inflation concerns eased, while the dollar extended strength, eroding demand for the precious metal as a store of value.

In Delhi, gold of 99.9 and 99.5 per cent purity declined by Rs 30 each to Rs 26,900 and Rs 26,700 per ten gram respectively. Sovereign, however, found some buying support and ended higher by Rs 100 to Rs 23,800 per piece of eight gram.

On the other hand, silver ready continued its upward journey and rose further by Rs 375 to Rs 37,025 per kg and weekly-based delivery by Rs 295 to Rs 36,455 per kg.

Silver coins also flared up by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces on hectic wedding season demand.

Source: FinancialExpress