Gold Prices Plunge Today, Silver Also Falls: 10 Things To Know


August 2, 2018

Gold tumbled by Rs 365 to Rs 30,435 per 10 gram today on the back of subdued global cues amid slump in demand from local jewellers, reported news agency Press Trust of India. Silver followed suit and declined by Rs 50 to Rs 39,000 per kg owing to reduced offtake by industrial units and coin makers. Traders said sentiment took a hit owing to a weak global trend, as the dollar strengthened after the US Federal Reserve kept interest rates steady as expected.

Here are ten things to know about gold prices, silver rates today:

1. Globally, gold prices rose on Thursday, recovering from the previous session’s fall, supported by a weaker dollar versus the Japanese yen in Asian trade, reported news agnecy Reuters. Spot gold was up 0.2 per cent at $1,218.23 an ounce after losing 0.65 per cent in the previous session. US gold futures were little changed at $1,226.70 an ounce.

2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 365 each to Rs 30,435 and Rs 30,285 per 10 gram, respectively. The precious metal had gained Rs 150 yesterday.

3. Sovereign, however, held steady at Rs 24,600 per piece of eight gram.

4. Following gold, silver ready declined by Rs 50 to Rs 39,000 per kg and weekly-based delivery by Rs 240 to Rs 37,940 per kg.

5. Silver coins however remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

6. Gold demand in India is set to improve in the second half of 2018, after falling 6 per cent in the first half, as government steps to boost farmers’ incomes are expected to lift rural buying power, the World Gold Council (WGC) said on Thursday, reported Reuters.

7. In the April-June quarter, Indian gold demand fell 8 per cent from a year ago to 187.2 tonnes, hit by a rally in local prices due to a depreciating rupee, WGC said the report.

8. Despite the fall, the WGC maintained a 2018 demand estimate of between 700 and 800 tonnes versus 763.4 tonnes last year. India’s demand has averaged 840 tonnes a year over the last decade.

9. Higher demand from the world’s second-biggest gold consumer could support global prices that are trading near their lowest in a year, although a rise in imports of the precious metal would widen India’s trade deficit.

10. A hike in crop prices and farm loan waivers would improve rural demand in the second half of the year, Somasundaram PR, managing director of WGC’s Indian operations, told Reuters. Two-thirds of India’s gold demand comes from rural areas, where jewellery is a traditional store of wealth.

Courtesy/Source: NDTV / PTI