Bland Demand Causes Gold To Lose Sheen

As the demand for gold weakens among local gold jewellers and retailers amid a slowing trend for the bullion across global markets, gold prices shed Rs 216 to stand at Rs 30,565 per 10 grams today. 

The reinforcing value of the US dollar is also causing the bullion to lose sheen and favour among investors.

Silver continued to be traded at previous levels of Rs 41,000 per kg on scattered inquiries from industrial units and coin manufacturers.

Market analysts have attributed the continuing fall in gold prices to the decreasing demand from jewellers. Although gold is traditionally considered to be a steady commodity in the market, a low wedding season, demonetisation, tax levies and tightening credit line have combined to slowed investments.

A  report published by HDFC Securities said that the Indian jewellery market is under the influence of  'Superpack', a network of 17 organised jewellery chains that is predicted to grab 42 per cent stock market share in the next five years. The battle for market share is likely to be between retail chains in north and western India, with 'Superpack' emerging as the strongest contender, according to the report. .

In the global market, gold prices shed by 0.17 per cent to US$ 1,265.66 an ounce, while silver prices fell by 0.23 per cent to US$ 16.24 an ounce, in Singapore today.

In New Delhi, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 145 each to Rs 31,570 and Rs 31,420 per 10 grams, respectively. However, sovereign gold observed no changes in value and stood at Rs 24,800 per piece of eight grams.

Meanwhile, silver stood steady at Rs 41,000 per kg on scattered deals, but the prices of weekly-based delivery went down by Rs 240 to Rs 39,490 per kg. The rate of silver coins stayed constant on Rs 74,000 for purchase and Rs 75,000 for the sale of 100 pieces.