New Delhi, Nov 3: Gold prices fell by Rs 300 to Rs 1,25,300 per 10 grams in the national capital on Monday as a stronger dollar and easing global uncertainties weighed on investor appetite for the safe-haven asset.
The precious metal of 99.5 per cent purity declined by Rs 300 to Rs 1,24,700 per 10 grams (inclusive of all taxes). It had closed at Rs 1,25,000 per 10 grams on Friday, according to the All India Sarafa Association. Gold of 99.9 per cent purity had settled at Rs 1,25,600 per 10 grams on Friday.
On the other hand, silver rallied by Rs 1,000 to Rs 1,54,000 per kilogram (inclusive of all taxes) from Friday’s closing of Rs 1,53,000 per kg.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09 per cent to 99.89, weighed on bullion prices.
In international markets, spot gold slipped below USD 4,000, declining 0.14 per cent to USD 3,996.77 per ounce, while spot silver was marginally lower at USD 48.64 per ounce.
“Gold prices fell below USD 4,000 per ounce on Monday, extending losses from the previous session, as expectations for further rate cuts diminished and safe-haven demand eased after a US-China trade deal,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.
Meanwhile, China removed a long-standing tax incentive on gold sales, a move that could raise consumer prices and weaken demand in one of the world’s largest bullion markets.
“Traders will now focus on this week’s US macroeconomic events including ISM PMI figures and ADP private payroll data,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
The data releases will provide more cues on the monetary policy. (PTI)
