New Delhi: Gold prices today fell by Rs 70 mainly due to slowing demand from local jewellers and muted global cues. Gold rates in global markets remained steady near two-month high as risk-averse investors sought refuge in the metal amid rising political tensions and economic uncertainty. In Delhi, gold rate of 99.9% fell by Rs 70 to Rs 32,180 per 10 gram, while 99.5% purity lost Rs 80 to Rs 32,020 per 10 gram, reported PTI. The yellow metal had gained Rs 200 Monday. Sovereign gold remained steady at Rs 24,700 per piece of 8 gram.
Following gold, silver prices eased by Rs 50 due to lower demand from industrial units and coin makers. Silver ready slipped by Rs 50 to Rs 39,700 per kg, while weekly-based delivery’s decline was steeper, which fell by Rs 160 to Rs 39,100 per kg, the report added. Silver coins, however, continued to be traded at the previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.
Global spot gold rate was little changed at $1,226.71 an ounce. It touched $1,233.26 on Monday, its highest since July 26. US gold futures were flat at $1,230.40 an ounce. Despite the recent rally in global gold rates, price of the precious metal remains down nearly 10% from its April peak. Gold, seen as a safe store of value during political and economic uncertainty, remains down nearly 10% from its April peak after investors preferred the dollar as the US-China trade war unfolded against a background of higher US interest rates.
“While the sell-off in stocks rekindled some demand, there were other key factors in play. With escalating trade tensions, concerns over slowing global growth, geopolitical tensions and U.S. mid-term election jitters in the mix, gold has a chance to shine,” Reuters quoted Lukman Otunuga, Research Analyst for FXTM as saying. “While the risk-off trading environment is poised to send gold higher in the near term, the medium- to longer-term outlook remains dictated by the dollar and U.S. rate hike expectations.”
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