Gold price falls on eve of Diwali due to weak global cues
Gold fell by Rs 100 to Rs 31,300 per 10 grams in the national capital Saturday, continuing sixth day of losses on sustained selling by stockists driven by a weakening global trend.
New Delhi: Gold fell by Rs 100 to Rs 31,300 per 10 grams in the national capital Saturday, continuing sixth day of losses on sustained selling by stockists driven by a weakening global trend.
After dropping Rs 1,170 in the previous five days. Gold prices continued its losing streak on stockists selling as gold in overseas markets declined to two-week low.
However, silver snapped two-day falling trend, recovered marginally by Rs 50 to Rs 49,150 per kg on scattered buying.
Traders said sentiment in gold remained bearish on sustained selling by stockists on sluggish at current higher levels.
They said a weakening global trend where gold fell to two- week low as US manufacturing in October increased at a faster pace than forecast, boosting the dollar and reduced demand for the precious metals as a safe haven.
Gold in New York, which normally sets the price trend on the domestic front, declined 0.8 percent to USD 1,313.20 an ounce, the lowest since October 17.
Investors shifting their funds from weakening bullion to surging equity market for safe investment also dampened the sentiment, they added.
On the domestic front, gold of 99.9 and 99.5 percent purity fell further by Rs 100 each to Rs 31,300 and Rs 31,100 per 10 grams, respectively, while sovereigns remained steady at Rs 25,300 per piece of eight in restricted buying.
On the other hand, silver ready found scattered buying support and recovered marginally by Rs 50 to Rs 49,150 per kg while weekly-based delivery shed Rs 20 at Rs 48,675 per kg. The white metal had lost Rs 1,000 in last two trade.
Silver coins continued to be asked at last level of Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.