Gold fell by Rs 520 per 10 grams to close the week at 30,945 during the week.
Mumbai: Both, gold and silver prices slipped during the week at bullion market following reduced investors offtake and slackened demand from jewellers and retailers at higher levels, amidst weak global trend, according to PTI report.
Gold fell by Rs 520 per 10 grams to close the week at 30,945 during the week. Traders said a weak trend overseas where a higher dollar against a basket of currencies dented safe haven appeal of gold, dampened the sentiments. Besides, a considerable drop in demand from jewellers and retailers at existing levels hit the sentiment, they said.
Silver too declined and cracked below the Rs 40,000- mark down by Rs 495 to settle at Rs 39,795 per kg on subdued offtake by industrial units and coin makers. On the global, gold finished a withering week with a slight gain on Friday, as a pickup in a benchmark Treasury yield to its highest level since 2011 and a resurgence in the US dollar moderated somewhat.
These factors throughout the week combined to decisively knock the commodity in to a downtrend and its worst weekly decline in five months. June gold rose to settle at USD1,291.30 an ounce.
Prices, which climbed modestly last week after three straight weekly falls, finished down 2.2 percent from last Fridays finish, the worst weekly tumble for the commodity since the period ended Dec.8, 2017, when gold fell 2.6 pct for the week.
A strengthening dollar and rising rates can dull investment demand for bullion, which offers no yield. With the dollar heavily supported by positive economic data and [interest] rate hike expectations, zero- yielding gold is likely to remain vulnerable to heavy losses, an analyst said.
While geopolitical tensions and uncertainty could offer some support, price action shows that bears remain firmly in control, he further added.