Gold prices today remained on an upward trend, rising for the third day amid buying by local jewellers to meet festive season demand. Higher global gold prices also supported domestic rates. Gold rates today advanced by Rs 130 to Rs 32,780 per 10 grams.
This is the highest price of gold since November 29, 2012, when it hit Rs 32,940 per 10 grams. Silver prices, however, today remained subdued and lost another Rs 90 at Rs 39,110 per kg, due to reduced offtake by industrial units.
In Delhi, gold of 99.9% and 99.5% purity advanced by Rs 130 each to Rs 32,780 and Rs 32,630 per 10 gram, respectively, Press Trust of India reported. The yellow metal had gained Rs 100 in the previous two days. Sovereign gold, however, held unchanged at Rs 24,900 per piece of 8 gram.
On the other hand, silver ready continued to show weakness and shed another Rs 90 at Rs 39,110 per kg and silver weekly-based delivery fell by Rs 222 to Rs 38,128 per kg.
Silver coins, however, ruled flat at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
In global markets, gold prices recovered today from a from a three-week low hit on Wednesday as the US dollar eased from multi-month highs. Spot gold was up 0.8% at $1,222.41 per ounce after falling for three sessions in a row.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.4% after hitting a 16-month high in the previous session. A stronger dollar makes dollar-denominated gold more expensive for users of other currencies. Buying at lower levels also supported global gold prices, said analysts.
Gold prices in India are inching towards Rs 33,000 per 10 grams as the rupee has lost more than 13% of its value against the US dollar so far in 2018, making purchases of commodities denominated in the greenback more expensive.
Back in India, gold demand this year is expected to fall from the previous year as a rally in domestic prices to near six-year highs is likely to dent purchases during forthcoming festivals such as Dhanteras and Diwali, the World Gold Council (WGC) said. A fall in demand from India, world’s second-biggest bullion buyer, could weigh on global prices.
