Gold Rates Fall Today To Lowest In 2 Weeks : 5 Things To Know

03 May 2018, 03:54 PM IST

Gold price: Non-interest yielding gold is highly sensitive to US interest rates

In Delhi, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 130 each to Rs 32,000 and Rs 31,850 per 10 grams, respectively.
Sovereign also weakened by Rs 100 to Rs 24,700 per piece of eight grams. Silver also followed suit. Silver ready declined by Rs 50 to Rs 40,200 per kg, while weekly-based delivery advanced by Rs 195 to Rs 38,915 per kg. Silver coins dropped by Rs 1,000 to Rs 74,000 for buying and Rs 7,5000 for selling of 100 pieces.
Globally, gold prices rose for a second session today after the US Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited US-China trade talks. Spot gold rose 0.2 percent to $1,307.05 per ounce.
Non-interest yielding gold is highly sensitive to US interest rates as it becomes less attractive compared with assets that bear interest. The Fed left its benchmark interest rates unchanged in a target range of between 1.50 percent and 1.75 per cent. The central bank raised rates in March and forecasts another two increases this year.
Investors also awaited the US-China trade talks between US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He due later today. The gold demand in India declined by 12 per cent in the first quarter of this year to 115.6 tonne compared to the same period last year due to high domestic gold price, the World Gold Council (WGC) said in a report.