Gold prices decline, silver rates slump amid muted demand

New Delhi-India (Nov 13)   Gold prices today edged lower but silver rates took a bigger hit. Gold prices declined Rs 100 to Rs 32,050 per 10 grams but silver rates today slumped below the Rs 38,000-mark by plunging Rs 700 to Rs 37,450 per kg. Traders attributed the sharp fall in silver prices to weak demand from industrial units and coin makers. Prices of gold of 99.99% and 99.5% purity fell by Rs 100 each to Rs 32,050 and Rs 31,900 per 10 grams respectively.

Sovereign gold prices, however, remained flat at Rs 24,800 per piece of 8 grams. Silver ready slumped by Rs 700 to Rs 37,450 per kg and weekly-based delivery by Rs 453 to Rs 36,662 per kg. Silver coins also dropped by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces as demand eased post festive season.

The decline in domestic gold prices came despite a rebound in global markets. Marketmen attributed the slide in domestic gold prices to easing demand from local jewellers and retailers at existing levels in but added that a firm trend overseas capped the fall.

In global markets, gold prices edged higher after the precious metal fell to over one-month lows weighed down by a stronger dollar. Spot gold was up 0.2 percent at $1,202.57 per ounce. Gold prices had slumped to their lowest level since October 11 at $1,199.72 earlier in the session.

“It’s been some time that we have seen this level, so we are seeing some buying here,” said Ronald Leung, said chief dealer at Lee Cheong Gold Dealers. “However, a stronger dollar has capped the market.”

The dollar index, which measures the greenback against a basket of six major currencies, was hovering near a 16-month high of 97.69.

A firmed greenback makes bullion expensive for holders of other currencies as the commodity is priced in dollars.

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