Gold prices fell for the third day in a row losing Rs 55 to Rs 31,520 per 10 grams in the bullion market in New Delhi on Friday on lack of demand at higher levels amid a stronger rupee against the dollar.
Silver, however, found some buying support from industrial units and recovered by Rs 400 at Rs 61,000 per kg.
Marketmen said sluggish demand due to ongoing ‘Shradh’, which are considered inauspicious in Hindu mythology for purchasing new things, mainly kept gold prices lower.
Stronger rupee against dollar, which makes imports cheaper, also influenced gold prices, they said.
The rupee on Friday touched nearly six-month high of 51.41 against the dollar in early trade on strong capital inflows and a firming trend in the equity market after the government unleashed second wave of reforms yesterday.
The gold of 99.9 and 99.5 per cent purity shed Rs 55 each to Rs 31,520 and Rs 31,320 per 10 grams, respectively. The metal lost Rs 175 in last two trading sessions.
Sovereign continued to be asked around previous level of Rs 25,450 per piece of eight grams.
On the other hand, silver ready recovered by Rs 400 to Rs 61,000 per kg, while weekly-based delivery declined by Rs 175 to Rs 62,350 per kg.
Silver coins held steady at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces in scattered deals.