Gold price falls to Rs. 30,050 on weak global cues, tepid spot demand

Mumbai-India (Aug 31)  Gold eased by Rs. 50 to Rs. 30,050 per ten gram at the bullion market today largely in tandem with a weak trend overseas amid tepid demand from local jewellers.

Silver too fell Rs. 100 to Rs. 40,500 per kg due to reduced offtake by industrial units.

Traders said the sentiment remained bearish on weak global cues as the dollar strengthened against a basket of major currencies after strong US growth data fuelled speculations that the Federal Reserve could consider interest rate hike for a third time this year, diminishing the demand for precious metals.

Globally, gold prices fell 0.11 per cent to $1,306.70 an ounce and silver by 0.12 per cent to $17.37 an ounce in Singapore.

Besides, a sluggish demand from local jewellers and retailers at the domestic spot market, weighed on the prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs. 50 each to Rs. 30,050 and Rs. 29,900 per ten gram, respectively. The precious metal had lost Rs. 350 yesterday. Sovereign however surged Rs. 100 to Rs. 24,600 per piece of eight gram.

Tracking gold, silver ready declined by Rs. 100 to Rs. 40,500 per kg and weekly-based delivery by Rs. 85 to Rs. 39,515 per kg. Silver coins however spurted by Rs. 1,000 to Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.

BusinessLine