New Delhi: Gold prices plunged by Rs140 to Rs30,710 owing to a weak trend overseas even as the metal witnessed token buying by retailers and jewellers on auspicious ‘Dhanteras’.
The yellow metal witnessed some token buying though failed to take off on Dhanteras, a day considered auspicious for buying gold, silver and other valuables and is largely celebrated in North and West India.
A weak trend overseas as the dollar strengthened against a basket of major currencies, eroding appeal of the metal as a safe haven, mainly led to the fall in gold prices.
Earlier in the day, Finance Minister Arun Jaitley launched gold options trading on the leading commodity bourse MCX and said this is one of the steps towards formalising gold trade. After the success of the gold options, MCX said it will approach the Securities and Exchange Board of India seeking permission for other commodities like cotton, crude palm oil, silver and copper.
Silver also recorded a fall of Rs400 to Rs41,000 per kg even as retailers made token buying in coins. Globally, gold rates fell 0.45% to trade at $1,288.70 an ounce in Singapore, while silver shed 0.64% to $17.09 an ounce.
In the national capital, gold of 99.9% and 99.5% purity fell by Rs140 each to Rs30,710 and Rs30,560 per 10 gram, respectively. Sovereign however continued to be enquired at Rs24,700 per piece of eight gram. Bullion traders said sales were higher by up to 20% on a daily basis as people bought gold as an investment and sales are expected to pick up later in the day.
The government’s revocation of an order that mandated permanent account number and Aadhaar for purchases above Rs50,000 also spurred retail buying but weak trend overseas weighed on the gold prices. In futures trading at the MCX, gold for delivery in December too was down by Rs104, or 0.35%, at Rs29,750 per 10 gram.
In tandem with the overall trend, silver ready also dropped by Rs400 to Rs41,000 per kg, while weekly-based delivery was down Rs490 at Rs39,990 per kg. Silver coins remained unaltered at Rs74,000 for buying and Rs75,000 for selling of 100 pieces on some support.
Meanwhile, gold prices have gone up marginally by Rs120, or 0.39%, while silver has dropped by Rs1,700, or almost 4%, from last year’s Dhanteras.