Gold prices gain today, silver rates fall
New Delhi-India (Sept 24) Gold prices today rose by Rs 100 to Rs 31,550 per 10 gram helped by rising demand from local jewellers despite weak global cues, reported PTI. Gold rates inched down in global markets as the dollar held firm on news that China has called off trade talks with the US, while investors eyed this week’s US Federal Reserve meeting for guidance on future rate hikes. Moreover, reports said that the government may not impose additional import duties on gold. In Delhi, gold rates of 99.9% and 99.5% purity rebounded by Rs 100 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The yellow metal had lost Rs 250 in Saturday’s trade. Sovereign however remained steady at Rs 24,500 per piece of eight gram.
On the other hand, silver prices eased by Rs 50 to Rs 38,100 per kg due to reduced offtake by industrial units and coin makers, added the report. Silver ready declined by Rs 50 to Rs 38,100 per kg and weekly-based delivery by Rs 65 to Rs 37,525. Silver coins however continued to be traded at the previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.
Global spot gold rate was little changed, down 0.02% at $1,198.85 by 3.30pm, after declining as much as 1.3% on Friday. US gold futures were up 0.2% at $1,203.20 an ounce. Liquidity was thin during Asian trading hours on Monday as markets in Japan and China were closed for a holiday. Gold has fallen more than 12 percent since a peak in April.
Meanwhile, Bank of America Merrill Lynch said that gold could average $1,350 an ounce over the next year as concerns deepen about the widening US budget deficit and a tariff-driven trade war starts to damage the country’s economy.
The dollar index also struggled as Asian currencies strengthened on news that China had cancelled trade talks with US. The rupee, however, weakened against the dollar, tracking panic selling in the local equity markets. At 4.15 pm, the rupee was trading at 72.57, down 0.51% from its previous close. So far this year, the rupee has declined 11.5%.
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