Precious metals extended its slide for the 2nd consecutive week and cracked below Rs 30,000-mark to close at Rs 29,835 per 10 grams at the bullion market during the week amid weakening global trend and considerable fall in demand from local jewellers.
Traders said sentiment was downbeat as gold prices slipped to their lowest in a year in global markets, as the dollar firmed after Federal Reserve Chairman Jerome Powell’s US economic outlook reinforced views that the central bank is on track to steadily hike interest rates, eroding appeal of the precious metal.The yellow-metal shed a whopping 2.29 per cent in its two week downslide, or Rs 695 per 10 grams. Silver slipped below the Rs 38,000-mark due to reduced offtake by industrial units and coin makers. The white-metal plunged 3.57 per cent in its second weekly fall, or Rs 1,390 per kg.In worldwide trade, Gold prices settled higher yesterday, chipping away some of their weekly loss, as comments from President Donald Trump on US interest rates and the dollar, weighed heavily on greenback.
Trump voiced his displeasure with Federal Reserve interest-rate increases in a Thursday interview, prompting a decline in the benchmark dollar index, which gained momentum after he tweeted on Friday, accusing China and the European Union of manipulating their currencies and interest rates August gold rose USD 7.10, or 0.6 per cent, to settle at USD 1,231.10 an ounce. The contract settled at USD 1,224 Thursday the lowest finish for a most-active contract since July 2017.
Thursdays settlement also marked bullions entry into correction territory down more than 10 per cent from its peak on Jan 15 at USD 1,362.90. The futures contract saw roughly 0.8 per cent decline this week.In other trading, September silver gained 14.7 cents, or nearly 1 per cent, to USD 15.549 an ounce. The contract fell over 1 per cent Thursday to settle at USD 15.402 an ounce its lowest close since late 2016. It saw a 1.7 per cent weekly loss.
In the New York Comex trade, gold for August delivery dropped to settle at USD 1,231.10 an ounce compared to last weekend’s close of USD 1,241.20, while September silver contract fell to finish at USD 15.549 an ounce from USD 15.815 earlier.
On the domestic front, standard gold (99.5 purity) resumed higher at Rs 30,180 per 10 grams from last Friday’s closing level of Rs 30,050 and drifted to a low of Rs 29,700 before closing at Rs 29,835, revealing a loss of Rs 215, or 0.72 per cent.Pure gold (99.9 purity) also commenced higher at Rs 30,330 per 10 grams compared to preceding weekend level of Rs 30,200 and slipped to a low of Rs 29,850 before concluding at Rs 29,985, revealing a fall of Rs 215 per 10 grams, or 0.71 per cent.