New Delhi, Aug 28 (PTI) Gold’s shine dimmed further on Friday, with prices falling by Rs 3,300 to Rs 1.62 lakh per 10 grams in the national capital as a resurgent US dollar and profit-booking by traders extended bullion’s losing streak to a third session.
The yellow metal of 99.9 per cent purity depreciated by Rs 3,300 to Rs 1,62,400 per 10 grams (inclusive of all taxes) from Thursday’s closing level of Rs 1,65,700 per 10 grams, according to local traders.
The three-day slide has pulled gold down by Rs 4,700, or nearly 3 per cent, from Rs 1,67,100 per 10 grams on August 25, when the precious metal was riding high on a recent rally.
Silver, too, lost ground in the domestic markets, dropping Rs 5,000 to Rs 2,45,500 per kilogram (inclusive of all taxes) from the previous close of Rs 2,50,500 per kg.
Gold prices remained volatile this week, with traders booking profits for the third straight session after a recent rally as the US dollar regained strength above the 99.15 level, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
The domestic bullion market also faced pressure from reports of a customs duty cut by the central government due to rising smuggling activity.
“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,” Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said.
In the international markets, spot gold was trading marginally lower at USD 4,599.70 per ounce.
Spot gold was hovering around USD 4,600 per ounce as investors await US Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium being held in Kansas City, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Warsh needs to assuage inflationary concerns amid elevated yields as market interventions are becoming more frequent.
Market participants are bracing for a hawkish speech. If Warsh fails to convince investors, the dollar could come under pressure, potentially giving bullion another leg higher, Singh said.
Meanwhile, silver bucked gold’s retreat in the overseas markets, rising 1.51 per cent to USD 70.31 per ounce. PTI HG SHM
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