Diwali:Gold moves lower ahead of Dhanteras; on global cues

After logging gains for two days, gold price on Thursday headed lower by Rs 15 to Rs 30,700 per 10 grams ahead of the auspicious Dhanteras on Friday as buyers put off their buying activity amid a weak trend overseas.

Silver cracked below the Rs 43,000-mark by falling Rs 300 to Rs 42,700 per kg due to reduced off-take by industrial units and coin makers.

Traders said that besides the muted trend overseas, absence of buying by jewellers and retailers on the eve of Dhanteras, which is considered auspicious to snap up gold, mainly led to the modest fall in the precious metal prices.

“Buying activity is likely to pick up tomorrow on Dhanteras day, considered to be an auspicious day for buying gold, silver and other valuables,” said Rakesh Anand of R K Jewellers.

Globally, gold fell 0.50 per cent to USD 1,266.70 an ounce and silver 0.82 per cent to USD 17.60 an ounce in New York yesterday.

Meanwhile, state-run trading firm MMTC has tied up with seven banks, including ICICI and HDFC Bank, to sell government minted ‘Indian Gold Coin’ in order to cash in on Dhanteras buying rush.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 15 each at Rs 30,700 and Rs 30,550 per 10 grams, respectively. The precious metal had gained Rs 300 in the previous two days.

Sovereign, however, remained flat at Rs 24,500 per piece of eight grams in scattered deals.

Following gold, silver ready dropped by Rs 300 to Rs 42,700 per kg and weekly-based delivery by Rs 305 to Rs 42,185 per kg.

Silver coins, however, held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.