NEW DELHI, OCT 13 (PTI): Gold prices fell for the second straight session, declining Rs 400 to Rs 1.52 lakh per 10 grams in the national capital on Tuesday as a strengthening rupee restricted the domestic rates of the imported precious metal.
The rate of 99.9 per cent pure metal depreciated Rs 400 to Rs 1,52,600 per 10 grams, inclusive of all taxes, from Monday’s closing level of Rs 1,53,000 per 10 grams, according to the All India Sarafa Association.
Silver also dropped Rs 500 to Rs 2,26,000 per kilogram, inclusive of all taxes, from the previous close of Rs 2,26,500 per kg.
The rupee strengthened for the third straight session and gained 40 paise to close at 95.38 against the US dollar, supported by various RBI measures aimed at reducing spot dollar demand and curbing excessive positioning in the foreign exchange market.
Gold prices remained under pressure in the domestic market on Tuesday as the rupee strengthened against the US dollar. The rupee has risen more than 1.5 per cent in the past two sessions, said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Traders said rupee appreciation reduces the cost of importing dollar-denominated bullion, weighing on domestic prices.
In global markets, spot gold traded marginally higher at USD 4,184.73 per ounce, while silver stayed largely unchanged at USD 60.33 per ounce.
“Gold and silver are gaining in the overseas markets despite a firm US dollar. However, uncertainty over the Federal Reserve’s interest-rate outlook may limit further upside in the shiny metal,” said Gaurav Garg, Head of Research at brokerage platform Lemonn.
According to Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, crude oil prices moved lower as traders assess the possibility of additional Russian diesel supply entering global markets.
However, these supplies are unlikely to compensate for the global diesel deficit, he added.
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