5 days ago
Gold Prices Fall Third Day as Stronger Dollar Pressures Bullion
Gold became cheaper in New Delhi for the third day in a row.
Its price fell by Rs 3,300 for every 10 grams.
Silver also became cheaper in India, falling Rs 5,000 per kilogram.
Traders were selling some gold to lock in profits after its recent rally.
A stronger US dollar also made gold less attractive.
Reports about a possible customs-duty cut added pressure to Indian prices.
International gold prices were nearly unchanged at about USD 4,600 per ounce.
Investors were waiting to hear what Kevin Warsh would say at the Jackson Hole Symposium.
Silver prices overseas moved differently and rose by 1.51 per cent.
Gold prices in New Delhi fell Rs 3,300 to Rs 1,62,400 per 10 grams on Friday.
The decline extended gold’s losing streak to three sessions and brought its fall since August 25 to Rs 4,700, or nearly 3 per cent.
Silver prices dropped Rs 5,000 to Rs 2,45,500 per kilogram in domestic markets.
Traders attributed the decline to profit-booking, a stronger US dollar and reports of a possible customs-duty cut.
International investors awaited Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium, while overseas silver prices rose.
- Who
- Gold and silver traders, investors, commodity analysts, the US dollar and Federal Reserve Chair Kevin Warsh were central to the report.
- What
- Gold fell Rs 3,300 to Rs 1,62,400 per 10 grams, while silver fell Rs 5,000 to Rs 2,45,500 per kilogram in New Delhi.
- Where
- New Delhi’s domestic bullion market and international markets; Warsh’s speech was scheduled at the Jackson Hole Symposium in Kansas City.
- When
- Friday, August 28; the decline followed three consecutive sessions of falling gold prices.
- Why
- Profit-booking, a stronger US dollar and reports of a possible customs-duty cut pressured domestic bullion prices. Global investors were also awaiting Warsh’s comments amid inflation concerns and elevated yields.
Key facts
- Gold price
- Rs 1,62,400 per 10 grams, inclusive of all taxes
- Gold daily decline
- Rs 3,300
- Gold decline since August 25
- Rs 4,700, or nearly 3 per cent, over three sessions
- Silver price
- Rs 2,45,500 per kilogram, inclusive of all taxes
- Silver daily decline
- Rs 5,000
- International spot gold
- About USD 4,599.70 per ounce
- International spot silver
- USD 70.31 per ounce, up 1.51 per cent
Quotes
Manav Modi
Commodities Analyst at Motilal Oswal Financial Services Ltd
“On the domestic front, rumours regarding a customs duty cut amidst rising smuggling activity weighed on domestic prices and increased the disparity with international bourses.”
theprint.in
Sources
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