Gold prices hit six-week low as dollar firms on robust U.S. data

Mumbai, Sep 28: Gold prices slipped by by Rs 250 to Rs 31,300 per ten gram at the bullion market Friday, extending its slide for the third straight day largely in tandem with a weakening global trend amid tepid demand from local jewellers. Silver followed suit and dropped by Rs 450 to Rs 38,000 per kg due to poor offtake by industrial units and coin makers.

Gold was down about 1.6% in September, its sixth straight monthly loss. Spot gold was flat at $1,182.48 as of 0736 GMT. The metal touched its lowest since August 17 at $1,180.34 an ounce earlier in the session, dipping further from a six-week low of $1,181.61 hit on Thursday.

The dollar gained against its peers on Friday as data showed US economic growth accelerated in the second quarter at its fastest pace in nearly four years. Another report showed durable goods rose 4.5 percent in August, rebounding from a revised 1.2 percent drop the month before.

Globally, gold fell 0.98 per cent to USD 1,182.40 an ounce and silver by 0.42 per cent to USD 14.24 an ounce in New York Thursday.

Besides, fading demand from local jewellers and retailers at domestic spot market, too, fuelled the downtrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 250 each to Rs 31,300 and Rs 31,150 per ten gram, respectively. It had lost Rs 175 in the previous two days.

Sovereign gold, however, remained unaltered at Rs 24,500 per piece of eight gram in limited deals.

In sync with gold, silver ready drifted down by Rs 450 to Rs 38,000 per kg and weekly-based delivery by Rs 110 to Rs 37,860 per kg.

Silver coins, however, maintained a steady trend at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

PTI