Losing shine: Gold rate falls Rs 500 to Rs 39,720/10 gram

The yellow metal on Thursday rose by Rs 250 to touch a record high of Rs 40,220 per 10 gram in the national capital.

Silver also dropped Rs 450 to Rs 48,600 per kg on reduced offtake by industrial units and coin makers.

Easing in demand from jewellers in the domestic spot market amid sluggish trend overseas mainly led to a decline in gold prices, traders said.

Besides, appreciation in the rupee also weighed on precious metal, they added. In the early trade on Friday, the rupee was trading 12 paise higher at 71.67 vis-a-vis dollar. Rise in the domestic currency makes the import of gold cheaper.

Globally, gold was trading lower at USD 1,526.80 an ounce in New York, while silver was up at USD 18.52 an ounce. “Globally, spot gold corrected slightly but hovering well above USD 1,500 an ounce due to positive comments from US President (Donald Trump) on US-China trade discussions which eased gold’s safe-haven appeal,” said Hareesh V, head (commodity research), Geojit Financial Services.

On the domestic market, prices dipped lower from an all-time high hit on Thursday due to a strong Indian rupee and cues from the benchmark international market, he added.

In the national capital, gold of 99.9 per cent purity reduced by Rs 500 to Rs 39,720 per 10 gram while that of 99.5 purity fell Rs 520 to Rs 39,530 per 10 gram. Sovereign gold also dropped Rs 100 to Rs 30,100 per eight grams.

Silver ready declined Rs 450 to Rs 48,600 per kg, while weekly-based delivery slumped Rs 440 to Rs 46,790 per kg.