Gold prices fall today on weak demand, silver follows

New Delhi-India (Sept 27)  Gold prices declined by Rs 100 to Rs 31,550 per 10 gram following slowing demand from local jewellers amid a weak global trend, reported PTI. Global gold prices rose marginally as investors largely discounted a US interest rate hike, but gains were limited as the dollar gained following reports of a row in Italy’s new government. In Delhi, gold rates of 99.9% and 99.5% purity fell further by Rs 100 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The metal had lost Rs 75 in Wednesday’s trade. Sovereign gold rate remained steady at Rs 24,500 per piece of 8 gram.

In global markets, spot gold rate was up 0.1% at $1,195.61 an ounce. On Wednesday, the metal touched its lowest since Sept. 11 at $1,190.13 an ounce. Spot gold prices have closed in a range between $1,210 and $1,190 an ounce since Aug. 28. US gold futures were up 0.1% at $1,199.90 an ounce.

In line with gold, silver prices also fell by Rs 300 owing to reduced offtake by industrial units and coin makers, added the PTI report. Silver ready plunged by Rs 300 to Rs 38,450 per kg and weekly-based delivery by Rs 290 to Rs 37,970 per kg. Silver coins continued to be traded at previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

“The fact that the Fed didn’t come out as overly hawkish meant there was some positivity felt through emerging market currencies. This may be playing in gold being gingerly bought,” Reuters quoted Stephen Innes, APAC trading head at OANDA in Singapore, as saying. “We are still big sellers towards $1,200 an ounce and buyers towards $1,190 ... Bargain hunting is definitely coming to the equation at the lower end of the scale.”

The rupee strengthened marginally against the US dollar after the government increased import duties on select items to narrow current account deficit. At 4.33 pm, the rupee was trading at 72.59, up 0.03% from its previous close. The dollar index gained against a basket of six major currencies, supported by a dip in the euro after political crisis in Italy.

LiveMint

Silver Phoenix Twitter                 Silver Phoenix on Facebook