Tracking a weak cues from overseas market and easing demand from local jewellers, gold lost its glitter during the week and recorded a fall of Rs 480 to close at Rs 30,050 per ten grams at the bullion market during the week.
Traders said sentiment turned bearish on the back of subdued global trend, as the dollar extended gains from the previous session when US inflation data and trade war concerns boosted demand for the greenback.
Besides, fading demand from local jewellers and retailers at the domestic market, weighed on the gold prices.
Silver slumped below the Rs 39,000-mark due to poor offtake by industrial units and coin makers. In worldwide trade, Gold prices fell to their lowest settlement in nearly a year, with the precious metal failing to find safe-haven support from the US-China trade dispute, as the US dollar gained for the week.
A stronger dollarwhich has drawn haven demand amid the clash over trade between the US and China and pushed higher on rising-rate expectationshas been the most significant headwind for gold.
A strengthening greenback can make commodities linked to the monetary unit, such as gold, more expensive to buyers using other currencies. August gold lost USD 5.40, or 0.4 per cent, to settle at USD 1,241.20 an ounce, marking the lowest settlement for a most-active contract since July 17, 2017.The contract saw a 1.2 per cent weekly decline, the fourth such loss in five weeks. Meanwhile, September silver shed 16.2 cents, or 1 per cent, to USD 15.815 an ounce, the lowest finish year to date for a most-active contract.
Golds sister metal saw a weekly decline of 1.6 per cent, with the metal dogged by a downturn in industrials metals on the back of tariff tensions and a retreat for precious metals. In the New York Comex trade, gold for August delivery declined to settle at USD 1,241.20 an ounce compared to last weekend’s close of USD 1,255.80, while September silver contract fell to finish at USD 15.815 an ounce from USD 16.069 earlier.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 30,555 per 10 grams from last Friday’s closing level of Rs 30,530 and moved in a range of Rs 30,650 and Rs 30,135 before closing at Rs 30,050, revealing a loss of Rs 480, or 1.57 per cent.