Gold Price Breaks Three-Day Rising Spree: Five Things To Know

Gold Price Breaks Three-Day Rising Spree: Five Things To Know

Gold prices edged lower on Saturday, marking the first decline after three consecutive days. Gold prices in Delhi fell by Rs 40 to Rs 31,650 per 10 grams at the bullion market. The gold prices, said traders, were driven by a weak trend overseas amid easing demand from local jewellers. Gold prices had gained by Rs 330 per 10 grams in the national capital from Wednesday to Friday. In the international market, gold price inched lower on Friday to $1,254.45 per ounce amid weakness in the dollar. (Read: Want to invest in gold? Here are your options)

Here are five things to know:

1. Gold, silver prices in Delhi: Gold of 99.9 per cent and 99.5 per cent purity fell by Rs 40 each to Rs 31,650 and Rs 31,500 per 10 grams, respectively. Silver prices were steady at Rs 40,500 per kg. Silver ready was unchanged at Rs 40,5 00 per kg, while weekly-based delivery declined by Rs 90 to Rs 39,790 per kg.

2. Weakness in dollar: The dollar fell on Friday after data showed the US unemployment rate increased and wages grew less than forecast in June even as the economy created more jobs than expected. Wage growth is a closely watched signal of potential inflation that could prompt more interest rate hikes by the Federal Reserve, the US central bank.

3. What dollar weakness means: Weakness in the dollar tends to lift gold, making the greenback-priced metal cheaper for non-US investors.

4. Rupee vs dollar: Back home, the rupee edged up by 8 paise to end at 68.87 against the US currency on Friday. That marked a mild recovery from a record closing low for the rupee. The rupee is down nearly 8 per cent against the US dollar so far this year.

5. Decline in imports: Meanwhile, gold imports fell for a sixth month in June, provisional data from GFMS analysts at Thomson Reuters and bank dealers showed. Weakness in the rupee, raising domestic gold prices, led to decrease in demand for the yellow metal. The 25 per cent year-on-year drop in purchases by the world’s No. 2 consumer could weigh on global prices, which fell to their lowest in seven months last week.