Gold prices fall by Rs 220 today, silver follows

New Delhi-India (Oct 9)  Gold prices declined by Rs 220 to Rs 31,650 per 10 gram due to slowing demand from local jewellers amid weak global cues. Silver rates also fell by Rs 50 per kg to Rs 39,250 per kg due to reduced offtake by industrial units and coin makers. In Delhi, gold rates of 99.9% and 99.5% purity lost Rs 220 each to Rs 31,650 and Rs 31,500 per 10 gram, respectively. The metal had fallen by Rs 30 on Monday. Sovereign gold, however, remained steady at Rs 24,600 per piece of 8 gram in restricted activity.

Following gold, silver also traded lower by Rs 50 to Rs 39,250 per kg and weekly-based delivery by Rs 120 to Rs 38,735 per kg. On the other hand, silver coins continued to be traded at previous levels of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.

Global gold prices edged higher as risk appetite fell, with Asian stocks slipping to 17-month lows amid concerns over a potential slowdown in China’s economic growth. Global spot gold rate was up 0.2% at $1,189.58 an ounce. US gold futures rose 0.4% to $1,193.0 an ounce. Gold has held in a $34 range for the last 1-1/2 months.

“Gold is getting some support from bargain hunting and also some safe haven support on concerns of a potential sell-off in equities,” said Stephen Innes, APAC trading head at OANDA in Singapore. “I strongly believe the market is underpricing the potential for equity markets to derail. This is a key hedge for gold in my view.”

The rupee erased all its morning gains to hit a new record low of 74.28 against the US dollar in afternoon trade on Tuesday, tracking weakness in local equity markets and Asian currencies. At 2.06pm, the rupee was trading at 74.22, down 0.19% from its previous close of 74.07. The currency opened at 73.85 against the dollar and hit an all-time low of 74.28.

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