Gold prices fall after rising for four days, silver rates dip

August 29, 2018

New Delhi-India (Aug 29)  Gold prices today snapped a four-day rising trend, after they fell by Rs 70 to Rs 31,080 per 10 grams. In Delhi, gold of 99.9 per cent and 99.5 per cent purity slipped by Rs 70 each to Rs 31,080 and Rs 30,930 per 10 gram, respectively, according to a PTI report. Gold had risen Rs 530 in the previous four sessions. Sovereign also fell by Rs 100 to Rs 24,500 per piece of eight gram. According to traders, a fall in demand from domestic jewellers and retailers hurt local gold prices. Demand for gold was also hurt by prevailing higher prices, they added.

Silver too today lost Rs 170 to Rs 38,300 per kg due to reduced offtake by industrial units and coin makers, according to the report. Silver ready closed lower by Rs 170 to Rs 38,300 per kg, while weekly-based delivery fell by Rs 200 to Rs 37,075 per kg. Silver coins continued to be traded at the previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.

In global markets, gold prices inched higher today after a sharp fall in the previous session. A firmer dollar on the back of expectations of higher US interest rates and lingering China-US trade tensions capped the precious metal’s gain.

Spot gold was up 0.3 percent at $1,204.43 an ounce. “Prices have rebounded but the selling (on Tuesday) shows nobody wants to chase the metal above $1,210 ... There is going to be interest rate hikes in September and December, and that is acting as a burden for gold,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

The US dollar today recovered from a four-week low hit overnight as optimism over the US-Mexico trade deal gave way to caution ahead of an upcoming deadline in the China-US trade dispute. The rupee today hit a new all-time low of 70.57 against the US dollar.

In global markets, gold has fallen about 7.5% so far this year amid international trade disputes and the Turkish currency crisis, with investors increasingly turning to US dollar.


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