Gold, silver turn weak on global cues, muted demand

Thursday, Jul 14, 2016,16:38 IST By Metrovaartha A A A

New Delhi | Snapping its three-day rising streak, gold plunged by Rs 285 to Rs 30,650 per 10 grams at the bullion market today, tracking a weak trend overseas amid sluggish demand from jewellers and customers at the domestic spot market. Silver also halted its four-day upward trend by falling Rs 400 to Rs 46,500 per kg on reduced offtake by industrial units and coin makers.

Traders attributed the fall in gold prices to a weak global trend as investors await stimulus from policy makers as well as decline in demand from jewellers and retailers at prevailing level at domestic spot markets. Globally, gold lost 0.4 per cent to USD 1,337.54 an ounce in Singapore.

An appreciating rupee against the dollar, which made import of precious metals cheaper, also weighed on the sentiment. The rupee strengthened by 16 paise to 66.89 against the dollar (intra-day) at the forex market today. Meanwhile, in a relief to jewellers, the government yesterday increased excise duty exemption limit for small scale industry to Rs 10 crore from Rs 6 crore, waived the levy on sale of traded goods and relaxed various procedural norms.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity drifted lower by Rs 285 each to Rs 30,650 and Rs 30,500 per 10 grams, respectively. The precious metal had gained Rs 235 in the previous three days. Sovereign gold also slipped by Rs 100 to Rs 23,400 per piece of eight grams.

Following gold, silver ready dropped by Rs 400 to Rs 46,500 per kg and weekly-based delivery by Rs 365 to Rs 47,525 per kg. Silver coins, however, were unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.