Gold Prices Decline On Second Straight Day: 5 Things To Know

Gold prices slipped by Rs 150 to Rs 31,900 per 10 gram at the local market on Wednesday due to weak global cues, reported news agency Press Trust of India. Besides, fall in demand from local jewellers too kept pressure on the precious metal. Silver ready held steady at Rs 37,450 per kg on scattered support, while weekly-based delivery dropped by Rs 443 to Rs 36,219 per kg on speculative selling, it further said. Traders said sentiment was downbeat as the precious metals weakened in global market. Also, fading demand from local jewellers as well as retailers at the domestic spot market weighed on the prices.

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

1.  Globally, gold prices held steady on Wednesday as dollar retraced from a 16-month high touched earlier in the week, easing amid a surge in the euro and sterling on a draft Brexit agreement, reported Reuters. Spot gold was little changed at $1,202.08 per ounce in the intraday trade. Prices had slipped to their lowest level since October 11 at $1,195.90 in the previous session.

2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 150 to Rs 31,900 and Rs 31,750 per 10 gram, respectively. The precious metal had lost Rs 100 on Tuesday. Sovereign, however, continued to be traded at Rs 24,800 per piece of 8 gram.

3. Rupee strength continued to keep gold prices under pressure, say analysts. "SPDR Gold ETF has experienced minor inflows amid US-Saudi exchange of words. Traders would shift focus on Fed chair's speech and inflation data to come today," said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Commodities.

4. Silver weekly-based delivery tumbled by Rs 443 to Rs 36,219 per kg, while silver ready remained unaltered at Rs 37,450 per kg.

5. Silver coins too were under pressure and fell by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces. 

(With agency inputs)