Gold Prices Extend Losses For Second Straight Day: 5 Things To Know
Gold prices declined by Rs 150 to Rs 32,030 per 10 grams on Wednesday, registering a dip for the second consecutive day, reflecting sluggish global trend and considerable fall in domestic demand, reported news agency Press Trust of India. Silver followed suit and went down further by Rs 220 to Rs 39,480 per kg on reduced offtake by industrial units and coin makers. Traders said, sentiment was downbeat, largely owing to a weak global trend as the dollar surged overseas eroding the yellow metals' appeal as a safe-haven asset. Moreover, fall in demand from local jewellers and retailers at the domestic spot markets also dragged the precious metal.
Here are 5 things to know about gold, silver prices today:
1. Globally, gold prices edged lower early Wednesday as equities gained and the dollar firmed amid waning risk-averse sentiment, with the market awaiting minutes from the US Federal Reserve's latest policy meeting for fresh clues on the pace of interest rate hikes, reported Reuters. Spot gold was down 0.2 per cent to $1,221.56 per ounce in the intraday trade, but still near a 2-1/2-month high of $1,233.26 per ounce hit on Monday. US gold futures were down 0.5 per cent at $1,225.2 an ounce.
2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 150 and Rs 140 to Rs 32,030 and Rs 31,880 per ten grams, respectively. Sovereign gold, however, continued at Rs 24,700 per piece of eight gram in limited deals.
3. "Gold holdings in exchange-traded funds expanded for a sixth day, the longest run in almost six months, as tensions between the US and Saudi Arabia continue to simmer and investors weigh the economic outlook amid the US-China trade war. The comex gold comfortably is trading above a crucial support of $1,215 hence sentiment is likely to be positive in the evening session," said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities.
"Traders would also closely watch FOMC's last meeting's minutes for clear direction in the yellow metal."
4. In sync with gold, silver ready too dropped further by Rs 220 to Rs 39,480 per kg and weekly-based delivery by Rs 240 to Rs 38,860 per kg.
5. Silver coins, however, maintained a steady trend at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.
(With agency inputs)