Gold Prices Fall On Easing Demand: 5 Things To Know

Breaking a five-day gaining streak, gold prices declined by Rs 100 to Rs 34,270 per 10 grams on Monday, reported news agency Press Trust of India (PTI) quoting the All India Sarafa Association. The price of silver, however, advanced by Rs 90 to Rs 39,090 per kg on increased offtake by industrial units and coin makers. Decline in demand from local jewellers at the domestic spot market led to the dip in gold prices, though a firm global trend capped the fall, said the report citing bullion traders. On Saturday, gold had risen by Rs 70 to Rs 34,370 per 10 grams.    

Here are five things to know about gold and silver prices today:

1. Globally, gold rose above $1,400 on Monday, hovering near a six-year high touched in the previous session, driven by dovish signals from global central banks and increased tensions between the United States and Iran, reported news agency Reuters.

2. Spot gold was up 0.6 per cent at $1,406.83 per ounce in intraday trade, heading for a fifth straight session of gains. Gold prices hit $1,410.78 on Friday, their highest since September 4, 2013. US gold futures rose 0.7 per cent to $1,410.20 an ounce.    

3. In Delhi, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 34,270 and Rs 34,100 per 10 grams, respectively. Sovereign gold, however, held steady at Rs 26,800 per eight grams.

4. "Spot gold prices are hovering near six-year highs on growing tensions in the Middle East and dovish comments from the major central banks that boosted the yellow metal's safe haven appeal," Press Trust of India quoted Hareesh V, head-commodity research, Geojit Financial Services, as saying. 

5. Meanwhile, silver ready gained Rs 90 to Rs 39,090 per kg, while weekly-based delivery gained Rs 144 to Rs 38,098 per kg. Price of silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.

(With agency inputs)