Gold Silver Reports (GSR) – Gold prices edged down Rs 30 to Rs 30,630 per 10 gram on Tuesday, due to weak global cues amid slowing demand from local jewellers, reported PTI. In global markets, gold rates edged up from an 18-month low hit in the previous session as a break below a key psychological level triggered buying interest, while the US dollar pared gains after scaling a 13-month high. In Delhi, gold prices of 99.9% and 99.5% purity fell by Rs 30 each to Rs 30,630 and Rs 30,480 per 10 gram, respectively.
In domestic markets, gold prices had declined by Rs 40 in Monday’s trade.
In line with gold, silver prices fell Rs 335 to Rs 38,715 per kg due to poor offtake by industrial units and coin makers, added the report. On the other hand, silver coins held steady at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.
Global spot gold rate was up 0.2% at $1,195.51 an ounce, as of 12.30pm. In the previous session, the bullion hit $1191.35, its lowest since Jan. 30, 2017. US gold futures were up 0.3 percent at $1,202.50 per ounce.
World share markets regained their footing as the threat from the collapse of the Turkish lira ebbed and reassuring German data offset signs of slowing growth in China. After three weeks of losses, Turkey’s lira finally recovered as the country’s central bank moved to ease pressure on the currency, triggering a 7% surge to 6.4 per dollar.
The Indian rupee crossed the psychological 70-mark against US dollar for the first time as Turkey-led rout in emerging market currencies intensified. The rupee dropped to record low of 70.08 a dollar. The home currency opened at 69.84. So far this year, the rupee has weakened 8.3%, while foreign investors have sold $6.8 million and $5.15 billion in equity and debt markets, respectively.
Meanwhile, retail inflation dropped to a nine month low of 4.17% in July from 4.92% a month ago on the back of softening food prices and a favourable base. Core inflation eased to 6.1% from 6.4% a month ago.
Analyst believes that factors such as broader emerging market currency movement, dollar strength, and the trend in crude oil prices will continue to drive the outlook for the rupee in the immediate term. – Neal Bhai Reports
