Gold prices dip for yet another week

Mumbai: The slide in gold prices continued unabated for yet another week and recorded a further fall of Rs 160 in its prices to close at Rs 31,290 per ten grams at the bullion market, tracking a weak trend overseas amid tepid demand from local jewellers.

Silver followed suit and ended lower due to reduced offtake by industrial units and coin makers.

Traders said sentiment remained downbeat on weak trend overseas where gold finished lower, pressured by strong dollar and expectations that US Federal Reserve will hike interest rates in the meeting next week for the first time this year, making non-yielding bullion less attractive.

Globally, gold ended the week down at USD 1,313.60 an ounce and silver at USD 16.33 an ounce in New York.

Besides, fading demand from local jewellers and retailers due to end of wedding season at domestic spot market too fuelled the downtrend.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week on a steady note at Rs 31,450 and Rs 31,300 and advanced to Rs 31,515 and Rs 31,365 per 10 grams, respectively on scattered buying support.

Thereafter, its slipped to Rs 31,250 and Rs 31,100 per 10 grams on the back of weak global cues before ending at Rs 31,290 and Rs 31,140 per 10 grams respectively, still showing a fall of Rs 160 each.

Sovereign, however, moved in a narrow range in limited deals and settled at last level of Rs 24,800 per piece of eight gram.

In volatile movements on alternate bouts of buying and selling, silver ready finally ended the week lower by Rs 550 to Rs 39,100 per kg and weekly-based delivery finished down by Rs 575 to Rs 38,370 per kg.

Silver coins too plunged by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces in limited deals.