New Delhi: Gold prices on Tuesday declined by Rs150 to Rs31,800 per 10 gram amid weak global cues and muted demand from jewellers in the domestic market, reported Press Trust of India. A stronger US dollar against a basket of major currencies also weighed on gold prices. But silver reclaimed the Rs41,000 mark due to increased offtake by industrial units and coin makers. Silver prices spurted by Rs1,110 to Rs41,560, the report added. Global gold prices edged down as the dollar strengthened following US-North Korea summit and rising prospects of an interest rate hike by the US Federal Reserve.
In Delhi, gold of 99.9% and 99.5% purity fell further by Rs150 each to Rs31,800 and Rs31,650 per 10 gram, respectively. Prices of the precious metal had fallen by Rs100 on Tuesday.
The US dollar hit a three-week high against the yen and Asian shares gained as US President Donald Trump and North Korean leader Kim Jong Un signed a deal at the historic Singapore summit aimed at the denuclearisation of the Korean peninsula.
Easing geopolitical worries are bearish for gold as the metal is seen as a safe investment during times of political uncertainty. This coupled with higher interest rates dent the appeal of US dollar-denominated, non-interest paying bullion.
The US Fed is widely expected to raise interest rates in its two-day meeting, which begins later in the day. The European Central Bank and Bank of Japan also have policy meetings this week
The Indian rupee strengthened marginally against the US dollar ahead of key consumer price index (CPI)-based inflation data due later in the day. India imports most of its gold requirements.
With inputs from agency