Gold prices today declined by ₹100 to close at ₹34,270 per 10 gram in the bullion market. The fall in prices is attributed mainly due toeasing demand from jewellers despite a positive overseas trend.
Silver closed at ₹39,090 per kg, a rise of by ₹90 due to an increased offtake by industrial units and coin makers.
“Spot gold prices are hovering near six-year highs on growing tensions in the Middle East and dovish comments from the major central banks that boosted the yellow metal’s safe haven appeal,” A weak dollar, which plummeted to a 3-month low on expectations of an imminent interest rate cut by the US Federal Reserve, also assisted the sentiments,” he said to news agency PTI .
In the national capital, gold of 99.9% and 99.5% purity fell by ₹100 each to ₹34,270 and ₹34,100 per 10 gram, respectively.
Sovereign gold, however, held steady at ₹26,800 per eight gram. On Saturday, gold had risen by ₹70 to ₹34,370 per 10 gram.
Price of silver coins held flat at ₹80,000 for buying and ₹81,000 for selling of 100 pieces.
Meanwhile in the international bullion market gold prices have risen nearly 8% so far this month, and more than $70 just over the past week.
Hedge funds and money managers boosted their bullish stance in COMEX gold in the week to June 18 and speculators switched to a net long in silver futures and options, the U.S. Commodity Futures Trading Commission said on Friday.
Gold holding above the psychologically important $1,400 level is a positive signal for consolidation after last week’s rally, said Carlo Alberto De Casa, chief analyst at ActivTrades.
“The gold rally pushed silver up too, but the scenario in this case is less strong, as prices keep bouncing on the resistance area at $15.50,” he said to news agency Reuters.
Silver edged 0.1% higher to $15.37 per ounce and platinum was up 1.1% at $815.
The market’s focus now shifts to whether Washington and Beijing can resolve their trade dispute at a summit in Japan this week of leaders from the Group of 20 leading world economies.
Palladium rose 0.9% to $1,516.02 an ounce.