Hyderabad: Prices of gold and silver fell drastically on Friday tracking to the similar global trend. In the bullion market, gold prices tumbled by Rs 370 to ₹39,278 per 10 grams. Gold futures on MXC dropped by Rs1,000 to Rs38,527 per 10 grams.

The drop in demand from jewellery manufacturers coupled with strengthening rupee has resulted in a dip in gold prices. The home currency recovered by 21 paise. On the other hand, investors withdrawing their investments in gold, said a forex dealer. 

October gold futures on MCX fell one per cent to Rs38,527 per 10 grams. The gold future moved over Rs1,000 from the all-time high of Rs 39,885 earlier this week. On the other hand, silver prices suffered a sharper fall. Futures on MCX fell three per cent to Rs48,065 per kg, down nearly Rs 3,500 from a recent high of Rs51,489. Improved risk sentiment in the international markets has reduced the demand for the yellow metal. Further, a pullback by the rupee from recent lows puts pressure on gold prices.

Extending Thursday’s losses, gold prices in global markets were down marginally to $1,516.02/oz. Gold prices slumped over two per cent on Thursday and silver fell over four. The stronger-than-expected US economic data and hopes of a thaw in the US-China trade war improved the market sentiment and put pressure on the safe-haven yellow metal. Investors preferred to book profit as yellow metal reached highs.

 

Dasari Sreenivasa Rao

Dasari Sreenivasa Rao is a freelance journalist with 26 years of mainstream media experience in Hyderabad and Dubai. He was Business Editor at The Pioneer and Spl Correspondent at Deccan Chronicle and The Hans India. Earlier, he worked for prestigious media brands including ToI, Indian Express (Bombay) and SPG Media and Business Standard in Hyderabad. NSE-qualified Dasari specializes in derivatives trading. He was visiting faculty at IGNOU and handled two batches of journalism students. Dasari is passionate about business journalism and always suggests all to practice rigorous meditation that ensures peace of mind and helps in moving up the value chain.

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