Gold price slips from 6-year high on weak global cues, end of festive demand

NewDelhi-India (Nov 11)  Breaking its six-straight weeks of gains, gold slipped from near six-year highs with prices falling by Rs 580 to end at Rs 32,070 per 10 grams at the bullion market during the week owing to fall in demand from jewellers and retailers amid a weak trend overseas.

Marketmen said apart from absence of festive season demand from domestic jewellers and retailers, a weak trend in gold markets as the dollar firmed after the US Federal Reserve kept interest rates steady with a fourth hike for this year expected next month, diminishing the appeal of gold as safe haven, mainly dampened the sentiment.

Market was shut on Thursday on account of 'Goverdhan Pooja'.

Globally, gold slipped to $1,210.40, lowest in a week and silver at $14.25 an ounce as against previous week's closing of $1,233.20 and $14.82 an ounce.

In the national capital gold of 99.9 and 99.5 per cent puruty commenced the week on a higher note at Rs 32,690 and Rs 32,540 per 10 grams, respectively on increased buying by jewellers and retailers on the auspicious occasion of 'Dhanteras' and 'Diwali' festival.

Later, gold of 99.9 and 99.5 per cent purity slipped gradually to end the week lower by Rs 580 each to Rs 32,070 and Rs 31,920 per 10 grams, respectively.

In line with gold, sovereign too fell by Rs 200 to Rs 24,700 piece of 8 grams.

Tracking gold, silver ready and weekly-based delivery remained under pressure for the better part of the week and ended lower by Rs 1,530 and Rs 1,940 to Rs 38,000 and Rs 36,880 per kg respectively.

Silver coins too plunged by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

BusinessToday