Gold loses its sheen, slips by Rs 345 per 10 grams during the week

Mumbai: Tracking a weak trend overseas and muted demand from local jewellers, gold lost its sheen, slip by Rs 345 per 10 grams during the week at the bullion market. Silver followed suit and ended lower by Rs 320 on reduced offtake by industrial units.

Marketmen said fading demand from local jewellers and retailers in view of ending wedding season too put pressure on prices, they added.

Besides, a weak global trend as minutes from the last US Federal Reserve indicated a hike in interest rates, strengthening the dollar and diminishing the appeal of gold as safe haven, aided the downtrend, they added.

In worldwide trade, Gold settled lower, logging its worst weekly decline so far this year as the US dollar bounced back from its earlier weakness. Although gold finished out the week in negative territory, the metal managed to post a mild recovery in the wake of a Fed minutes release on Wednesday.

In it, central bankers said they expect inflation to tick higher. Higher inflation can be supportive for gold because the metal is often viewed as a hedge against rising prices.

April gold fell to settle at USD 1,330.30 an ounce, falling 1.7 per cent for the week. March silver slid 10 cents, or 0.6 per cent, to USD 16.48 an ounce for a weekly drop of 0.8 per cent.

In the New York Comex trade, gold for April delivery dropped to settle at USD 1,330.30 an ounce compared to last weekend’s close of USD 1,356.30, while March silver contract fell to finish at USD 16.48 an ounce from USD 16.712 earlier.

On the domestic front, standard gold (99.5 purity) resumed lower at Rs 30,715 per 10 grams from last Friday’s closing level of Rs 30,765 and drifted further Rs 30,405 before settling at Rs 30,420, revealing a loss of Rs 345, or 1.12 per cent.

Pure gold (99.9 purity) also commenced lower at Rs 30,865 per 10 grams compared to preceding weekend level of Rs 30,915 later declined further to Rs 30,555 before finishing at Rs 30,570, revealing a fall of Rs 345 per 10 grams, or 1.12 per cent.

Silver ready (.999 fineness) opened lower at Rs 38,510 per kilo gram from last Friday’s closing level of Rs 38,710, and later fell further to Rs 38,135 before ending at Rs 38,390, showing a loss of Rs 320 per kilo, or 0.83 per cent.