Gold price falls to Rs. 30,600 on weak global cues, lower spot demand

Mumbai-India (Sept 19)  Gold prices fell by Rs. 100 to Rs. 30,600 per 10 grams at the bullion market today, largely in tandem with a weak global trend amid muted demand from local jewellers.

Silver also cracked below the Rs. 41,000-mark by falling Rs. 700 to Rs. 40,500 per kg on reduced offtake by industrial units and coin makers.

Traders said a weak trend overseas, as market’s focus turned towards a two-day US Federal Reserve meeting that kicks off later in the day, kept pressure on the precious metal here.

Besides, the dollar’s strength against a basket of major currencies overseas weighed on gold prices. In addition, lower demand from local jewellers and retailers at the domestic spot market also dampened the sentiment.

Globally, gold fell 0.03 per cent to $1,306.70 an ounce and silver by 0.35 per cent to $17.11 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs. 100 each to Rs. 30,600 and Rs. 30,450 per 10 grams, respectively. The precious metal had lost Rs. 300 in the previous three sessions. Sovereign, however, remained unaltered at Rs. 24,700 per piece of eight grams.

Tracking gold, silver ready dropped by Rs. 700 to Rs. 40,500 per kg, while weekly-based delivery by Rs. 770 to Rs. 39,790 per kg. Silver coins, however, remained unaltered at Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.

BusinessLine