Gold Price Falls Rs 750: Weak Global Cues, Demand

New Delhi, Jul 19 (PTI) Gold prices tumbled by Rs 750 to Rs 75,650 per 10 grams, snapping a six-day winning streak in the local market on Friday, tracking a weak trend globally amid subdued demand by jewellers.

According to All India Sarafa Assocation, the precious metal rates had closed at Rs 76,400 per 10 grams in the previous session.

Meanwhile, gold of 99.5 per cent purity also declined by Rs 800 to Rs 75,300 per 10 grams. It had settled at Rs 76,100 per 10 grams on Thursday.

Silver prices also nosedived by Rs 1,000 to Rs 93,000 per kg. In the previous session, it had ended at Rs 94,000 per kg.

Traders attributed the decline in gold prices to a weak trend in the overseas markets and easing demand by jewellers within the country.

In the international markets, Comex gold was trading lower at USD 2,414.60 per ounce, down by USD 41.80 per ounce from the previous day.

"Comex gold continued to trade lower for the third consecutive session on Friday, pressured by the recovery in the US dollar from four-month lows and an increase in US 10-year treasury yields.

"Further, profit-taking by investors near all-time highs amid concerns over the tariff war with China and other political and geopolitical challenges overshadowed the growing likelihood of interest rate cuts," Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.

According to customs data, Swiss gold exports in June fell to their lowest level since April 2022 due to reduced shipments to China and India.

"...gold prices are trading lower and may hold declines on Friday due to the absence of any key economic indicators, though potentially dovish comments from a few Fed officials later on Friday could mitigate further losses," Chainwala added.

Additionally, silver was also quoted lower at USD 29.32 per ounce in New York.

"Gold edged lower on Friday as the US dollar continued to recover for the second day in a row. The dollar index rose after rebounding decisively from a four-month low as strong US economic data provided support," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.