Gold price falls on sluggish demand, weak global cues

New Delhi-India (July 15)  Gold price fell by ₹25 to ₹31,090 per 10 gram in tandem with a weak global trend and muted demand from local jewellers, reported PTI.

A weak overseas trend when metals’ prices slid to seven-month lows as the dollar rose to a two-week peak, buoyed by safe-haven purchases in the ongoing US-China trade war, influenced the sentiment here, the agency reported.

Demand for the precious metals also waned on expectations of higher US interest rates.

Globally, gold fell 0.47% to $1,241 an ounce and silver by 0.88% to $15.79 an ounce in New York yesterday.

Moreover, erosion in demand from local jewellers and retailers at domestic spot market fulled the downtrend, they said.

In the national capital, gold of 99.9% and 99.5% purity fell by ₹25 each to ₹31,090 and ₹30,940 per ten gram, respectively. It had lost ₹535 in last four days. Sovereign however held steady at ₹24,800 per piece of eight gram.

The Indian rupee strengthened against the US dollar on Friday, tracking the gains in Equity market. At 2pm, the rupee was trading at 68.49 a dollar, up 0.11% from its Thursday’s close of 68.57. It opened at 68.38 a dollar and touched a high and a low of 68.32 and 68.52, respectively. The 10-year bond yield was trading at 7.77% compared to its previous close of 7.78%. Bond yields and prices move in opposite directions.

In sync with gold, silver ready traded lower by ₹115 to ₹39,915 per kg and weekly-based delivery by ₹220 to ₹39,045 per kg. Silver coins however held steady at ₹74,000 for buying and ₹75,000 for selling of 100 pieces.

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