Gold prices fall sharply today but silver rates higher
New Delhi-India (Dec 13) Gold prices today fell for the second day, slumping Rs 320 to Rs 32,220 per 10 gram at the bullion market. Gold rates had declined Rs 110 on Wednesday. Silver rates however gained Rs 250 to Rs 38,800 per kg on strong demand from industrial units and coin makers. Sluggish demand from jewellers and weak global prices weighed on domestic gold prices. A higher rupee also makes prices of imported gold cheaper. Traders said low demand from jewellers and muted global prices exerted pressure on global gold prices.
In Delhi, prices of gold of 99.9% and 99.5% purities fell Rs 320 each to Rs 32,220 and Rs 32,070 per 10 gram, respectively, Press Trust of India reported. Sovereign gold, however, held steady at Rs 25,000 per piece of 8 gram. Silver ready prices today rose by Rs 250 to Rs 38,800 per kg, while weekly-based delivery was up by Rs 170 to Rs 38,351 per kg. Besides, silver coins remained unchanged at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.
In global markets, gold rates were muted as the dollar steadied and equities climbed on signs of easing trade tensions between the US and China. Spot gold was steady at $1,245.55 per ounce. The dollar index, which measures the greenback against six major rivals, was down a tad at 96.958, after retreating from a near one-month high overnight. A higher US dollar makes dollar-denominated gold more expensive for holders of other currencies, potentially subduing demand.
Next on the radar for gold traders is Fed’s next move at its December 18-19 meeting. The US central bank is widely expected to raise rates at the meet but investors focus would be on how much further it might lift rates next year.
However, uncertainties around the Brexit deal and expectations of Fed’s dovish tone at its meeting next week may support gold prices, analysts say. Spot gold prices could remain in the range of $1,240-$1,253 per ounce in the near term, said technical analyst Wang Tao.
The rupee today ended higher at 71.68 against the US dollar.
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