Good news for jewellery buyers: Gold prices have fallen Rs 450 while silver prices have declined by Rs 1,000 in one week in the New Delhi bullion market. The prices of precious metals such as gold and silver have been very volatile since the beginning of this year following the worries and uncertainties with regard to the multi-billion dollar trade war between US and China. In the local market, the weakening in the gold, silver prices is also due to the lower demand from the domestic jewellers.
From the last week, gold prices have fallen by Rs 450 to Rs 30,250 per 10 grams from a level of Rs 30,700 per 10 grams as on 11 August 2018 whereas silver prices have dipped by as much as Rs 1,000 to Rs 38,000 per kg from a level of Rs 39,000 per kg. Today itself, gold prices fell by Rs 90 to Rs 30,250 per 10 grams at the bullion market owing to tepid demand from local jewellers even as the precious metal strengthened overseas while silver prices held steady at Rs 38,000 per kg on scattered enquiries from industrial units and coin makers, PTI said in a report.
In the international market, investors shifting towards safe-haven assets such as gold due to the ongoing Turkish Economic Crisis that has led to a meltdown in most of the currencies around the world barring US dollar and Japanese yen. Earlier yesterday, gold recovered some ground as a weakening US dollar relieved pressure on prices, but the precious metal remained near 19-month lows and looked poised for its biggest weekly drop since May 2017, a Reuters report said. Spot gold added 0.31% to $1,177.21 ounce, but was down 2.7% this week in its sixth consecutive weekly loss.
In New Delhi on Saturday, 18 August 2018, gold of 99.9% and 99.5% purity declined by Rs 90 each to Rs 30,250 and Rs 30,100 per 10 grams, respectively whereas sovereign traded lower by Rs 100 to Rs 24,400 per piece of 8 grams, a PTI report said. On the other hand, silver ready ruled flat at Rs 38,000 per kg, while weekly-based delivery recovered by Rs 235 to Rs 36,940 per kg on speculative buying while, silver coins held steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces, PTI report added.
According to a Reuters report, gold prices have tumbled 14% from its April high as a rally in the greenback made dollar-priced bullion more expensive for buyers using other currencies. Investors seeking a safe place to store assets amid trade disputes and a Turkish currency crisis have preferred the dollar to gold, undermining the reputation of bullion as a safe haven, the report added.