New Delhi, Oct 12: Gold prices fell Rs 1,400 to Rs 1.53 lakh per 10 grams in the national capital on Monday as a stronger rupee and weakness in global markets pressured domestic bullion rates.
The 99.9 per cent pure metal had closed at Rs 1,54,400 per 10 grams on Friday.
Silver prices also declined Rs 2,000 to Rs 2,26,500 per kilogram, inclusive of all taxes, from the previous close of Rs 2,28,500 per kg, according to the All India Sarafa Association.
“Gold prices eased in the domestic market on Monday due to weak global cues, while a stronger Indian rupee added further pressure on the precious metals prices,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
The rupee appreciated 96 paise, logging its steepest single-day gain in more than six months, to close at 95.75 against the US dollar after the Reserve Bank of India over the weekend stepped in with several measures aimed at bolstering the domestic unit. Gandhi said physical demand remained mixed, with domestic gold buying subdued as prices rebounded, while demand in China was expected to improve after the holiday-shortened trading period.
In international markets, spot gold fell USD 17.36, or 0.41 per cent, to USD 4,176.88 per ounce, while silver traded marginally lower at USD 60.66 an ounce.
“Gold traded lower around USD 4,179 an ounce in global markets despite softer oil prices. The US dollar index remained near an 18-month high, limiting upside potential in precious metals,” said Gaurav Garg, Head of Research at brokerage platform Lemonn.
Crude prices declined as expectations of increased Russian energy supplies eased immediate supply concerns. However, renewed tensions in West Asia and risks to regional shipping continued to fuel volatility in oil rates, Garg added.
According to Vikram Subburaj, CEO at investment platform Giottus.com, gold currently had a stronger near-term outlook, while silver’s muted advance warranted greater caution.
Investors would track the movement in the dollar, US bond yields, the rupee and upcoming inflation data before treating the latest move as a sustained trend, he added.
