On Wednesday, gold prices drifted lower by Rs 25 to Rs 31,570 per 10 gram, while silver prices fell below Rs 41,000 mark by Rs 120 per kilogram in the city.
A weakening global trend and easing demand from local jewellers at the bullion market continued to pull gold prices lower in New Delhi for the second consecutive day today. On Wednesday, gold prices drifted lower by Rs 25 to Rs 31,570 per 10 gram, according to a PTI report. Reduced offtake by industrial units and coin makers pulled silver prices below Rs 41,000 mark, falling by Rs 120 per kilogram in the city. However, depreciation in the Indian rupee trimmed losses in gold futures prices, said currency analysts.
In the national capital, gold of 99.9 and 99.5 per cent purity lost Rs 25 each to Rs 31,570 and Rs 31,420 per 10 gram, respectively, PTI reported. However, sovereign gold price remained steady at Rs 24,800 per piece of eight gram. Silver prices drifted lower by Rs 120 to Rs 40,880 per kg.
Showcasing an opposite trend, near-month August gold futures rose by over Rs 100 to Rs 30,690 per 10 grams on the Multi Commodity Exchange of India. Silver futures for delivery in near-month July rose by Rs 78 to a high of Rs 39,718 per kilogram on Wednesday. Spot gold prices in Ahmedabad were up at Rs 30,475 per 10 gms, while spot prices for silver were up at Rs 39,546 per kg, MCX India data showed.
“Depreciation in INR limited the downside in MCX and now it’s trading near 30,600 in MCX, 1000 points down from its 2018 high. Going forward, the yellow metal should remain in range on seasonal dullness and some bounce back in equity market,” said Vandana Bharti, Assistant Vice President, Commodity Research at SMC Investments & Advisors. “Any downside in dollar index may result in some upside movement in gold but on temporary basis. August onwards we may see gradual recovery in the process. In COMEX, it should trade in a range of $1,245 to 1,315 and in MCX it may trade in a range of 29,800-31,500,” Bharti told FE Online.
Vandana Bharti explained that gold prices have seen a “see saw movement” in 2018 so far. “It was very volatile in the first quarter; overall it traded in upper band and crossed the mark of $1360 in COMEX and Rs 31,600 in MCX on safe haven buying amid weakness in dollar index. In the second quarter it shed its previous gain as physical buyers were reluctant to buy on higher prices amid strong bounce back in dollar index. In COMEX, the fall was steeper as compared to MCX,” she said.