New Delhi, Oct 14 Gold prices fell for the third straight day, shedding Rs 1,800 to Rs 1.5 lakh per 10 grams in the national capital on Wednesday as a strengthening rupee amplified pressure on the precious metal.
The 99.9 per cent pure metal declined Rs 1,800 to Rs 1,50,800 per 10 grams, inclusive of all taxes, from Tuesday’s closing level of Rs 1,52,600 per 10 grams, according to the All India Sarafa Association.
Silver also extended its decline, tumbling Rs 5,000 to Rs 2.21 lakh per 10 grams, inclusive of all taxes, from the previous close of Rs 2.26 lakh per kg.
The yellow metal has shed Rs 3,600 since October 9, and silver has fallen Rs 7,500 over the same period, highlighting the scale of the retreat in the domestic bullion markets.
The rupee rose 19 paise to close at 95.17 against the US dollar, registering the fourth straight session of gains, supported by the RBI’s interventions designed to ease near-term demand for the greenback and limit speculative foreign exchange exposure.
Traders said a stronger rupee makes dollar-priced bullion cheaper to import, weighing on domestic prices even as investors track international market movements.
“Gold prices extended losses in the domestic market on Wednesday, tracking weak global cues and a stronger rupee,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
According to Pankaj Singh, smallcase manager and Founder & Principal Researcher at SmartWealth.ai, festive demand in India and sustained Chinese buying could cushion the downside, although further appreciation in the rupee may cap domestic prices.
“The near-term outlook remains cautious, with currency movements likely to be as important as international gold prices in determining returns for Indian investors,” Singh said.
Globally, spot gold fell USD 20.51, or 0.49 per cent, to USD 4,140.69 per ounce. Silver dropped more than 1 per cent to USD 58.49 an ounce, near a three-month low. The white metal last traded around USD 58.40 per ounce on July 27.
“Gold is trading weak on Wednesday, slipping below USD 4,150 an ounce and hitting a fresh weekly low,” said Vedika Narvekar, Research Analyst – Commodities & Currencies at Anand Rathi Share and Stock Brokers Ltd.
She said gold had remained range-bound for around two weeks, while the dollar has eased from an 18-month high, it remains firm, adding pressure on precious metals.
“Everyone is waiting for the US inflation numbers scheduled to come later in the day before taking a firm view on the precious metals,” Narvekar added.
(PTI News)
