Gold prices today slip from six-year high, silver rates edge lower
New Delhi-India (Oct 26) Gold prices today edged lower, reversing a three-day rising streak. Gold rates slipped by ₹35 to ₹32,590 per 10 gram on sluggish demand from local jewellers. Gold had risen by ₹125 on Thursday to over six-year high of ₹32,625 per 10 gram, buoyed by festive and wedding season demand. Following the trend in gold prices, silver prices fell today by ₹100 to ₹39,500 per kg due to reduced offtake by industrial units and coin makers.
In Delhi, gold of 99.99% and 99.5% purity fell by ₹35 each to ₹32,590 and ₹32,440 per 10 grams, respectively, according to a report from Press Trust of India. Sovereign, however, continued to be traded at ₹24,800 per piece of eight gram.
Traders said that higher prices hit gold demand today, leading to a decline in gold prices. However, higher global prices helped cap the fall in domestic gold prices.
In line with gold, silver ready today traded lower by ₹100 to ₹39,500 per kg and weekly-based delivery by ₹230 to ₹38,760 per kg. Silver coins too fell by ₹1,000 to ₹75,000 for buying and ₹76,000 for selling of 100 pieces.
In global markets, gold prices rose today, edging towards the three-month highs hit earlier this week. The recent selloff in global equities helped support gold prices, said analysts. Global stocks slid today and were headed for their worst week in over five years. Gold is seen as a safe haven in times of financial, economic and geopolitical uncertainties.
Spot gold was up 0.4% at $1,236.45, having earlier this week hit $1,239.68, its highest since the middle of July.
“The confusion in bond and stock markets is fuelling some interest in gold. If they continue to fall, that will give support to gold. You’ll then have trend buyers coming in and supporting the price,” said Reuters quoted Alasdair Macleod, head of research at GoldMoney.com, as saying.
Global gold prices have gained more than 6% since mid-August, amid US-China trade tension and the recent turmoil in global financial markets. The depreciation of the rupee against the US dollar has also boosted gold prices in India.
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