Gold slides by Rs 130 on muted demand, weak global cues

Gold prices on Monday declined by Rs 130 to Rs 34,140 per 10 gram in the bullion market here on reduced demand from jewellers and a weak global trend amid easing trade tension between the US and China that dented the precious metal’s appeal as safe haven, according to the All India Sarafa Association.

Globally, gold was trading lower at USD 1,387.09 an ounce, while silver was quoting lower at USD 15.17 an ounce in New York.

“Spot gold in the international market slid to USD 1,388.09 an ounce today, its lowest level in more than one week. Reports that the US and China agreed to restart trade talks prompted investors to bet on riskier assets that dented gold’s appeal as a safe haven asset,” said Hareesh V, Head-Commodity Research, Geojit Financial Services.

“A strong dollar which rallied to one-week high also pressurised prices,” he said

Last week, gold prices went up to a six-year high of USD 1,438.63 an ounce due to growing tensions in the Middle East and a weak dollar, he added.

Tracking gold, silver also fell by Rs 260 to Rs 38,570 per kg on reduced offtake by industrial units in the national capital. Gold of 99.9 per cent and 99.5 per cent purity dropped Rs 130 each to Rs 34,140 and Rs 33,970 per 10 gram, respectively.

Sovereign gold also fell by Rs 50 to Rs 26,800 per eight gram. On Saturday, gold fell by Rs 15 to Rs 34,270 per 10 gram, while silver rose by Rs 230 to Rs 38,830 per kg.

Meanwhile, silver ready prices declined by Rs 260 to Rs 38,570 per kg, while weekly-based delivery reduced by Rs 295 to Rs 37,157 per kg. Price of silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.