Gold Price Falls Below Rs 31,000: Five Things To Know

Gold prices today hit a nearly three-week low of Rs 30,950 per 10 grams taking a cue from weak global trade. A fall in demand from local buyers also added to the pressure, said traders, news agency Press Trust of India reported. Gold declined by Rs 600 per 10 grams in the local market. Meanwhile, silver also plunged below the Rs 39,000 per kg mark on poor offtake by industrial units and coin makers. Silver fell by Rs 450 to Rs 38,900 per kg.

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

1) In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell steeply by Rs 600 each to Rs 30,950 and Rs 30,800 per 10 grams, respectively. Gold of 99.9 per cent had fallen to Rs 30,950 on January 18.

2) Traders said sentiment was downbeat as the precious metal fell to four-week lows on a firmer dollar amid expectations of more US interest rate hikes, diminishing appeal of gold as a safe haven bet.

3) In Singapore, gold prices fell 0.61 per cent to $1,310.10 an ounce, and silver by 0.37 per cent to $16.28 an ounce.

4) Following gold, silver ready tumbled by Rs 450 to Rs 38,900 per kg and weekly-based delivery by Rs 820 to Rs 37,735 per kg.

5) Silver coins, on the other side, were unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces in scattered deals.

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Meanwhile, San Francisco Federal Reserve Bank President John Williams said on Wednesday that the Federal Reserve - the US central bank - will stick to its plan for "steady, gradual" interest-rate increases, news agency Reuters reported.

Hikes in interest rates lead to higher bond yields and dampen the demand for non-yielding gold. The yellow metal is also used as a hedge against inflation.