Markets

Gold falls ₹250 on muted demand, weak global cues

Silver declined marginally by ₹10 to ₹41,950 per kg on reduced offtake by industrial units and coin makers.

After touching an all-time high in the previous session, gold prices on Tuesday fell ₹250 to ₹35,720 per 10 gram in the national Capital amid weak trend overseas and a fall in domestic demand, according to the All India Sarafa Association.

Silver declined marginally by ₹10 to ₹41,950 per kg on reduced offtake by industrial units and coin makers.

Trading sentiment turned bearish after gold declined in overseas markets as a strengthening U.S. dollar reduced the demand for the precious metal as an alternative investment, traders said.

Besides, lacklustre demand from jewellers also weighed on gold prices, they added.

Globally, spot gold was trading lower at $1,418.20 an ounce in New York, while silver was up at $16.47 an ounce.

“Gold prices witnessed decline after dollar index gained strength ahead of ECB meeting and U.S. Debt ceiling deal,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

In the national Capital, gold of 99.9% and 99.5% purity fell by ₹250 each to ₹35,720 and ₹35,550 per 10 gram, respectively.

Sovereign gold also declined by ₹100 to ₹27,400 per eight gram.

On Monday, gold prices touched an all-time high of ₹35,970 per 10 gram.

Silver ready dropped ₹10 to ₹41,950 per kg, while weekly-based delivery fell ₹38 to ₹41,035 per kg.

Price of silver coins held flat at ₹84,000 for buying and ₹85,000 for selling of 100 pieces.

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Printable version | Feb 23, 2020 11:36:24 PM | https://www.thehindu.com/business/markets/bullion-gold-falls-250-on-muted-demand-weak-global-cues/article28684486.ece

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