Gold prices fall Rs 270 on stronger rupee, weak sentiment
New Delhi: Gold prices on Thursday fell Rs 270 to Rs 38,454 per 10 gram in the national capital on stronger rupee and overall weak investment sentiment, according to HDFC Securities.
Prices of silver also tumbled Rs 380 to Rs 47,310 per kilogram here. In the previous trade, silver closed at Rs 47,690 per kilogram.
On Wednesday, gold had closed at Rs 38,724 per 10 gram.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said gold prices in India extended losses with prices for 24 Karat in Delhi dropping Rs 270 on stronger rupee and overall weak investment sentiment in gold.
The spot rupee recovered from morning losses and was trading 14 paise stronger against the dollar, he added.
The Indian rupee opened 24 paise down at 71.36 against the US dollar on Thursday.
In the international market, gold prices traded flat at USD 1,497 an ounce in New York and silver at USD 17.72 per ounce.
“Gold prices traded lower on Thursday with international spot gold prices trading below USD 1,500 per ounce to USD 1,497 an ounce after FOMC rate decision,” Patel said.
Hareesh V, head (commodity research), Geojit Financial Services, said, “Spot gold held below USD 1,500 an ounce, as investors stayed away from taking fresh bets after the US Federal Reserve’s policy meeting that has not given a clear picture on the central bank’s policy outlook.”
He further added that domestic gold and silver traded down due to weak international sentiments and a stronger rupee.
The Federal Open Market Committee (FOMC) lowered the policy interest rate by 25 bps to a target range of 1.75 to 2 per cent.