Gold lost its glitter and dipped below the Rs 32,000-mark to close sharply lower at Rs 31,600 per ten grams at the bullion market during the week, taking weak cues from overseas markets and fall in demand from local jewellers. Silver also slumped below the Rs 41,000-mark due to poor offtake by industrial units and coin makers.
International gold rates fell after the US reported a stronger than expected payrolls data, raising hopes that the Federal Reserve could make another hike in interest rates this month. This would, in turn, push the value of US dollar higher. Spot futures in the US are highly sensitive to interest rates.
President Trump also said that the historic summit with North Korean leader Kim Jong Un would take place as scheduled, indicating easing tensions between the two countries. Relaxed geopolitical relations do not favour the yellow metal, dragging its value down with reduced demand from investors.
Besides, fading demand from local jewellers and retailers at domestic spot market weighed on the gold prices. Globally, gold ended the week lower at USD 1,293.10 an ounce and silver at USD 16.38 an ounce in New York.
In the Delhi, gold of 99.9 percent and 99.5 percent purity started the week on a subdued note in tandem with weak global cues and plunged further to end at Rs 31,600 and Rs 31,450 per ten grams respectively, showing a sharp fall of Rs 770 each.
Sovereign, however, moved in a narrow range in scattered deals and settled at the previous level of Rs 24,800 per piece of eight grams. Silver ready ended the week down by Rs 700 to Rs 40,500 per kg and weekly-based delivery by Rs 730 to Rs 39,535 per kg. Silver coins, however, maintained steady trend at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
Inputs from PTI