Gold Prices Fall On Tepid Demand: 5 Things To Know

Gold prices came down by Rs 100 to Rs 32,050 per 10 grams at the bullion market on Tuesday owing to slackened demand from local jewellers despite a firm trend in overseas markets, reported news agency Press Trust of India. Silver followed suit and cracked below the Rs 38,000-mark by plunging Rs 700 to Rs 37,450 per kg due to reduced offtake by industrial units and coin makers, it further said. Marketmen attributed the slide in gold prices to easing demand from local jewellers and retailers at existing levels in domestic spot market but added that a firm trend overseas capped the fall.

Here are 5 things to know about gold, silver prices:     

1. Globally, gold prices edged higher on Tuesday as investors resorted to bargain-hunting after the precious metal fell to over one-month lows weighed down by a stronger dollar, reported Reuters. Spot gold was up 0.2 percent at $1,202.57 per ounce at 0746 GMT. Prices fell to their lowest level since October 11 at $1,199.72 earlier in the session.

2. In Delhi gold of 99.99 per cent and 99.5 per cent purity fell by Rs 100 each to Rs 32,050 and Rs 31,900 per 10 grams respectively. Sovereign gold, however, remained flat at Rs 24,800 per piece of 8 grams.

3. "Once again gold in the domestic exchange has faced bearish tone due to appreciating rupee. The rupee-dollar pair has weakened due to falling crude oil prices and strong domestic industrial production (IIP) data which came yesterday. No investment demand is seen in the international markets. Traders would shift focus on US inflation to be released on Friday this week," said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities.   

4. Silver ready slumped by Rs 700 to Rs 37,450 per kg and weekly-based delivery by Rs 453 to Rs 36,662 per kg.

5. Silver coins also dropped by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces as demand eased post festive season. 

(With agency inputs)