New Delhi: A weak global trend and sluggish demand from local jewellers pulled down gold price by Rs 30 to Rs 31,360 per ten gram at the bullion market today. Silver too shed Rs 90 to Rs 39,210 per kg due to reduced offtake by industrial units and coin makers. In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 30 each to Rs 31,360 and Rs 31,210 per ten gram, respectively. It had lost Rs 460 yesterday.
5 Things To Know About Gold Price Drop Today
1. Traders said sentiment was dampened due to a weak trend overseas where the strong dollar following comments from Federal Reserve Chairman that fanned concerns of faster-than-expected hikes in US interest rates, took away some of the safe haven appeal of the precious metal.
2. Subdued demand from local jewellers in domestic markets too weighed on the gold prices, traders said.
4. Globally, gold prices fell to a three-week low on Thursday, weighed down by a stronger dollar, while investors awaited the second session of Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee later in the day.
5. The dollar index, which measures the greenback against a basket of major currencies, was steady at 90.617. It had earlier touched its highest since Jan. 19 at 90.744. Higher interest rates tend to boost the dollar and push bond yields up, making greenback denominated, non-yielding gold more expensive for holders of other currencies.