Domestic gold prices extended their slight recovery to a second straight day, in line with the international market. With a gain of Rs. 15 per 10 grams on Friday, gold prices in Delhi made a total recovery of Rs. 40 in two days. A pick-up in demand at the local spot market and a firm trend in gold prices overseas – backed by a strengthening dollar – supported domestic gold prices, say traders. Upward movement in the dollar makes gold more expensive for buyers with other currencies.
Here are five things to know on gold and silver prices:
1. In Delhi, gold prices of 99.9 per cent and 99.5 per cent purity edged higher by Rs. 15 each to Rs. 30,840 and Rs. 3 0,690 per 10 grams, respectively, news agency Press Trust of India reported.
2. Silver prices also jumped by Rs. 750 to Rs. 39,900 per kilogram at the bullion market on Friday.
3. Globally, gold prices edged up from a one-year low registered in the previous session, as the US dollar eased from its highest in a year. Spot gold was up 0.1 percent at $1,223.71 an ounce at 4:16 pm, reported news agency Reuters. In the previous session, it fell to its weakest since July last year at $1,211.08 an ounce.
4. Gold was still down 1.4 per cent this week, with little sign of an end to the slide in prices that has shaved more than 10 per cent off its value since mid-May. Gold prices this week were battered by strength in the dollar.
5. Higher interest rates are also a threat to gold because they tend to boost the dollar and raise the opportunity cost of holding non-yielding bullion.