Gold spot prices were on the downside throughout the week, except on Thursday, reflecting selling of the precious metal in the international market and amid stronger dollar.
On Monday, gold prices fell Rs 326 to Rs 52,423 per 10 gram in the Delhi in line with a weak global trend and rupee appreciation. In the previous trade, the precious metal had closed at Rs 52,749 per 10 gram. Silver prices also declined Rs 945 to Rs 68,289 per kilogram from Rs 69,234 per kilogram in the previous trade.
“Gold prices traded under pressure on dollar recovery,” Tapan Patel, HDFC Securities senior analyst (commodities), was quoted as saying by news agency PTI. “Gold prices erased earlier gains to trade lower due to an uptick in dollar,” Navneet Damani, vice president of commodities research at Motilal Oswal Financial Services, was quoted as saying by PTI.
The next day gold prices again tumbled Rs 672 to Rs 51,328 per 10 gram in the national capital on a weak global trend. Silver also witnessed massive selloff with prices tanking Rs 5,781 to Rs 61,606 per kilogram.
“Spot gold prices for 24 carat in Delhi plunged Rs 672, reflecting selloff in international prices despite rupee depreciation,” HDFC’s Patel said on Tuesday. “Gold prices extended decline with other asset classes on stronger dollar. Investors switched to dollar as safe-haven avenue on fears of second wave of virus infections in Europe and UK,” Patel added, according to the news agency.
The rupee had depreciated 20 paise and settled at 73.58 (provisional) against the US dollar on Tuesday, tracking negative domestic equities.
Gold price declined on Wednesday by Rs 614 to Rs 50,750 per 10 grams in the national capital amid lower price for the yellow metal in the international market. Silver also tanked by Rs 1,898 to Rs 59,720 per kilogram. Gold price continued on the downside on stronger dollar as the investors switched to dollar as a safe-haven avenue on fears of second wave of virus infections, an expert was cited as saying by PTI.
Gold price fell for fourth consecutive day on Thursday, declining by Rs 485 to Rs 50,418 per 10 grams in the national capital amid weak international trends. Silver also tumbled by Rs 2,081 to Rs 58,099 per kilogram.
However, gold prices rose by Rs 324 to Rs 50,824 per 10 gram on Friday in Delhi, halting its four-day decline on recovery in international price of the precious metal. Silver prices also bounced back and gained Rs 2,124 to Rs 60,536 per kilogram.
Gold prices witnessed recovery from Thursday’s evening session as dollar index pared gains on US stimulus hopes, experts said.
(With agency inputs)