Gold prices slump Rs 270 on slow demand

New Delhi-India (July 10)   Gold prices declined by Rs 270 to Rs 31,380 per 10 grams on Tuesday following weak global cues amid lack of demand from local jewellers, reported PTI. Globally, gold prices erased early gains to trade marginally lower as the US dollar recovered, while lingering US-China trade worries and political uncertainty over Brexit limited losses. In Delhi, gold rates of 99.9% and 99.5% purity plunged by Rs 270 each to Rs 31,380 and Rs 31,230 per 10 grams, respectively.

Global spot gold rate was down 0.1% at $1,256.79 an ounce after touching its highest since 26 June at $1,265.87 in the previous session. US gold futures for August delivery were 0.2% lower at $1,257.40 an ounce.

The dollar index against a basket of six major currencies was up 0.04% at 94.114 after dropping to its lowest since mid-June on Monday. Investors were also on the sidelines awaiting developments on the trade war between US and China. Last week, the world’s top two economies slapped tit-for-tat duties on $34 billion worth of each other’s imports.

The Indian rupee on Tuesday was trading marginally lower against US dollar amid thin trade as many dealers are on leave due to heavy rains in Mumbai. The currency opened at 68.72 a dollar and touched a high and a low of 68.72 and 68.84, respectively.

In line with gold, silver prices also fell by Rs 100 to Rs 40,650 per kg due to reduced offtake by industrial units and coin makers, added PTI.

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