In New Delhi, the price of 22-carat gold dropped by Rs 100 to Rs 47,800 per 10 gm. In Mumbai, the rate dropped to Rs 47,800 according to the Good Returns website
BS Web Team
Last Updated at January 29, 2021 07:46 IST
Gold price declined further to Rs 48,800 per 10 gm on Friday, extending yesterday’s fall. Silver price also fell by Rs 200 to trend at Rs 66,000 per kg, according to the Good Returns website. Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes. In New Delhi, the price of 22-carat gold dropped by Rs 100 to Rs 47,800 per 10 gm, while in Chennai it inched up by Rs 50 to Rs 46,220. In Mumbai, the rate dropped to Rs 47,800 according to the website.
The price of 24-carat gold in Chennai was at Rs 50,620 per 10 gm.
In the international market, Gold eased on Thursday as investors opted for the relative shelter of the US dollar from waning risk-on sentiment and after the US Federal Reserve expressed worries over the slow pace of economic recovery.
Spot gold was down 0.2 per cent at $1,840 an ounce by 1258 GMT. Prices had fallen to their lowest since January 18 at $1,830.80 on Wednesday. US gold futures shed 0.3 per cent to $1,838.60.
“The (Fed) meeting yesterday had no positive impact on gold because, before and after the meeting, the dollar strengthened as it was sought after as a safe-haven due to other concerns in financial markets and that weighed on gold prices,” said Commerzbank analyst Daniel Briesemann.
The Fed said the pace of the recovery in US economic activity and employment had moderated in recent months, but kept its key interest rates and monthly bond purchases unchanged.
The dollar hovered near a one-week high hit in the previous session after a sharp sell-off on Wall Street on Wednesday and with European equities hitting one-month lows in early Thursday trade.
“If you have a sharp decline in equities, you’d expect gold to come down with it…meaning that quite often people who are looking at the possibility of margin calls raise cash by selling their gold holdings,” said StoneX analyst Rhona O’Connell.
The delay in a $1.9 trillion US coronavirus stimulus deal, which has not received a green signal from Republicans, weighed further on gold.
First Published: Fri, January 29 2021. 06:28 IST