Gold prices edge lower today, silver follows

Mumbai-India (Oct 1)  Gold prices today declined by Rs 75 amid weak global cues, while silver rates fell by Rs 150, reported PTI. Global gold rates fell as the dollar firmed against major currencies after the US Federal Reserve last week indicated that it will pursue a tighter monetary policy. In Delhi, gold prices of 99.9% and 99.5% purity declined marginally to Rs 31,475 and 31,325 per 10 gram, respectively. Sovereign gold, however, remained flat at Rs 24,500 per eight gram. Gold had gained Rs 250 to Rs 31,550 per 10 gram on Saturday.

Following gold, prices of silver ready declined by Rs 150 to Rs 38,950 per kg. Silver coin rates fell to Rs 72,000 per 100 pieces, from Rs 73,000 earlier. Silver for weekly-based delivery dropped by Rs 130 to Rs 38,520 per kg.

Global spot gold rate was down 0.5% at $1,186.29. In the previous session, gold touched its lowest since Aug. 17 at $1,180.34 an ounce. US gold futures slipped 0.5% to $1,190.60 an ounce. Gold has fallen about 13% from an April high, largely because of the stronger dollar.

“Gold prices remain dependent on the dollar at this juncture. The U.S. economy has been rosy and better than expected. Efforts by the Trump administration to reduce the trade deficit from an economic point of view has been friendly for the greenback as well,” Reuters quoted OCBC analyst Barnabas Gan as saying.

The rupee weakened against the dollar as crude oil prices surged to a four-year high ahead of US sanctions against Iran. At 4.17pm, the rupee was trading at 72.84, down 0.48% from its previous close. The dollar index was up 0.1% versus a basket of major currencies, and hovered close to a near three-week high hit in the previous session.

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