Gold prices declined on Wednesday, closing slightly lower at Rs 48,421 per 10 gram in the national capital. According to the prices given by the Indian Bullion and Jewellers Association, on January 27, the closing rate without GST for gold (purity-999) was Rs 48,975, while for gold with purity-995 is Rs 48,779. Silver prices stood at Rs. 65,750 at the end of Wednesday.
In the international market, both gold and silver were trading flat at USD 1,850.5 per ounce and USD 25.41 per ounce. Gold futures fell 0.48 per cent to Rs 48,905 per 10 gram on Wednesday as participants offloaded their holdings on low spot demand. On the Multi Commodity Exchange, gold prices for February delivery declined by Rs 238, or 0.48 per cent, to Rs 48,905 per 10 gram in a business turnover of 4,347 lots.
According to reports that quote the World Gold Council, global gold demands had slumped to an 11-year low amid the COVID-19 pandemic in 2020. Reportedly the decline was led by key Indian and Chinese markets that experienced historically weak sales. The WGC report suggests that the gold demand is set to recover this year.
In the meantime, the rupee depreciated by 21 paise to 73.13 against the US dollar in opening trade on Thursday tracking muted opening in domestic equities and strengthening American currency. At the interbank forex market, the domestic unit opened at 73.13 against the US dollar, registering a fall of 21 paise over its previous close. On Wednesday, the rupee had settled at 72.92 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 90.75.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 336.05 points lower at 47,073.88 and the broader NSE Nifty was down 95.60 points at 13,871.90. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,688.22 crore on a net basis on Wednesday, according to exchange data. Brent crude futures, the global oil benchmark, fell 0.61 per cent to USD 55.47 per barrel.
(With inputs from agencies)
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