Gold, silver fall for third day; Nagpur 24-carat gold at Rs 1,54,750 per 10g
Profit-booking and a firmer US dollar pulled gold and silver lower on Tuesday, with Nagpur gold at Rs 1,54,750 per 10 grams
A slowdown in the global market and a strengthening US dollar were clearly visible in the Indian bullion market on Tuesday. Gold and silver prices rose slightly in early trade, but heavy selling pressure after noon led to a sharp fall in rates.
Gold prices fell for the third consecutive day in the bullion market. Gold became cheaper by Rs 1,500 to close at Rs 1.54 lakh per 10 grams. The pressure on precious metals came from investors booking profits and the US Federal Reserve's tough stance on interest rates.
On the Multi Commodity Exchange (MCX), the futures price of 24-carat gold fell 0.49 percent, or Rs 750, to Rs 1,52,344 per 10 grams by evening, compared to the previous day's close of Rs 1,53,094. According to Bullion Association data, the rate for 24-carat gold stood at Rs 1,53,050 per 10 grams. Meanwhile, GoodReturns recorded the price of 24-carat gold at Rs 1,54,900 per 10 grams.
In the international market, spot gold was priced at 4,371.30 dollars per ounce. On New York's Comex market, the December gold futures contract fell about 1 percent, or 28.45 dollars, to 4,355.45 dollars per ounce, compared to last week's close of 4,424.90 dollars. In the global spot market, gold fell about 1 percent to 4,315.09 dollars per ounce and silver fell to 65.50 dollars per ounce.
According to the India Bullion and Jewellers Association (IBJA), the rate this morning for 24-carat gold was Rs 1,52,136 per 10 grams, for 22-carat gold Rs 1,39,357 per 10 grams, for 18-carat gold Rs 1,14,102 per 10 grams and for 14-carat gold Rs 89,000 per 10 grams.
In Nagpur today, the price of 24-carat gold stood at Rs 1,54,750 per 10 grams. The same rate was recorded in Mumbai, Pune, Nashik, Kolhapur, Jalgaon, Sangli and Chhatrapati Sambhajinagar.
The Indian rupee strengthened by 15 paise against the US dollar to reach 95.81 per dollar, and a rally in the stock market also had an effect on precious metal rates.
According to Gaurav Garg, head of research at Lemonn, gold is currently caught between different pressures. Tough statements from Federal Reserve officials and inflation concerns have kept bond yields and the dollar strong, while on the other hand, rising tensions in the Middle East have supported demand for precious metals.
According to Akshat Siddhant, lead quant analyst at Mudrex, with crude oil prices falling for a fourth consecutive session and inflationary pressure easing, gold is trading around 4,350 dollars per ounce.
With the dollar strengthening and fears of a rise in US interest rates, investors are shifting from safe investments to cash by booking profits, which is behind the fall seen in the market.
