Yellow metal prices in the domestic markets slid slightly as on the MCX the October futures traded at Rs 46,806 per 10 grams. Silver prices though showed a meagre rise as September futures traded at Rs 63,592 per kg mainly due to rupee depreciation.
At the international level, gold prices declined as they recorded a weekly loss in the last one month over fears among investors on US Federal Reserve’s asset tapering expectations.
The yellow metal also traded under pressure due to concerns that price rise will raise expectations of tapering of assets by the US Federal Reserve. Gold spot prices traded low by 2 per cent at $1,787 per ounce for the week.
Gold ETF holdings continued with their declining trends as holdings at SPDR gold shares fell to 998 tonnes for the week.
Silver prices at the international level also fell by 4 per cent to trade at $23.74 per ounce for the week.
Commenting on gold prices, Ravindra Rao, head of commodity research at Kotak Securities said, “COMEX gold trades marginally lower near $1,791 per ounce after 0.4 per cent decline in previous session. Weighing on gold price is firmness in US dollar amid persisting debate about Fed’s monetary tightening. Also weighing on price is weaker investor interest as is evident from ETF outflows. However, supporting price is geopolitical tensions, rising inflation, US-China tensions, China’s regulatory measures and persisting virus risks.”