Gold price drops below Rs 31,000 over weak global cues

After five sessions of gains, gold prices on Monday fell by Rs 300 per ten grams to crack below the 31,000-level and silver by Rs 450 to Rs 43,600 per kg at the bullion market on easing demand from jewellers coupled with weak global cues.

Sentiment took a hit after gold tumbled overseas amid positive developments on the US election front, strengthening the dollar and diminishing appeal of the precious metal as a safe-haven, bullion traders said.

The FBI has given a clean chit to Hillary Clinton, saying she should not face criminal charges after a review of new emails, an 11th-hour respite for the Democratic presidential candidate that could be a game changer in the tight race for the White House.

Globally, gold fell 1.29% to $1,287.20 an ounce and silver by 1.17% to $18.19 an ounce in Singapore.

Besides, fall in demand from jewellers and retailers at prevailing levels at domestic spot market fuelled the downtrend in the precious metals prices.

In the national capital, gold of 99.9% and 99.5% purity slumped by Rs 300 each to Rs 30,850 and Rs 30,700 per 10 grams, respectively. The precious metal had gained Rs 500 in the previous five days.

Sovereign also traded lower by Rs 100 to Rs 24,500 per piece of eight grams.

Tracking gold, silver ready dropped by Rs 450 to Rs 43,600 per kg and weekly-based delivery by Rs 395 to Rs 43,000 per kg.

Silver coins, however, held steady at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel