Gold Prices Drop, Silver Rates Also Fall: Key Things To Know
Gold prices slipped by Rs 100 to Rs 31,550 per 10 gram at the bullion market on Thursday, reported news agency Press Trust of India (PTI). According to traders, gold rates fell due to a weak trend overseas and muted demand from local jewellers. In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 100 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. Silver prices also declined by Rs 300 to Rs 38,450 per kg owing to reduced off-take by industrial units and coin makers.
Here are key things to know about gold prices, silver rates today:
1. According to traders, weak trend overseas following the US Federal Reserve rate hike for the third time this year and a fall in demand at the domestic spot market pushed gold prices down.
2. On Wednesday, gold prices edged lower by Rs. 75 to Rs. 31,650 per 10 grams at the bullion market.
3. Sovereign gold today remained steady at Rs 24,500 per piece of 8 gram.
4. Globally, gold prices edged higher on Thursday as investors largely discounted a US interest rate hike, but gains were limited as the dollar rose following reports of a row in Italy's new government. On Wednesday, the metal touched its lowest since September 11 at $1,190.13 an ounce.
5. Gold is sensitive to higher interest rates because they boost the dollar, making bullion more expensive for buyers using other currencies.
6. "The Federal Reserve's decision to raise interest rate by 25 bps pressurized the gold. However, continued depreciation in the rupee contained losses in the rupee. US will release Q2 GDP, Core durable goods orders and pending home sales in the evening session. Hence we expect the yellow metal and the dollar to be volatile", Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities told NDTV.
7. Silver ready today plunged by Rs 300 to Rs 38,450 per kg and weekly-based delivery by Rs 290 to Rs 37,970 per kg.
8. Silver coins continued to be asked at previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces. (With agencies inputs)
