New Delhi, October 7: A day ahead of Vijayadashami 2019, gold prices in the Indian national capital stuck at Rs 39,210 per 10 grams. The rate at the bullion market slipped by nearly Rs 30 as compared to the last closure of Rs 39,240 on Saturday. The rate of silver also plunged by Rs 90, taking it to Rs 46,390 per kilogram. The dip in prices is being attributed to a weak demand despite the ongoing Dussehra festive season. At What Rate Gold Prices Had Settled at Last Closure?
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "Spot gold prices for 24 karat gold in Delhi were trading marginal down to Rs 39,210 on weak spot demand in holiday shortened week". He, however, added that the weaker rupee has limited downside in gold prices.
The rupee opened on a weak note and declined by 21 paise to 71.09 against the US dollar in opening trade on Monday, as sustained foreign fund outflows weighed on investor community.
In the international market also, gold was trading marginally down at $1,503 an ounce, while silver was slightly lower at $17.47 an ounce in New York.
Patel said, "The international gold prices traded steady above $1,500 as investors are awaiting for the development from key US-China trade talks. The constant ETF inflows in gold and aggressive gold buying from China and other emerging economies have supported gold prices to trade up".
The public unrest in Hong Kong and Iraq may add risk premium to gold prices, while impeachment inquiry on US President Donald Trump may also support gold prices against stronger dollar, he noted.
(With PTI inputs)