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.