Precious metal pulls back in global markets as dollar strengthens: steady trend at home

MUMBAI: As the dollar firmed in the global market, the precious metal retreated. Fund houses are choosing to refrain from making big plays in gold ahead of the release of economic data in the US. Despite the fall in the world market, domestic gold and silver prices remained relatively stable. The rupee remained stable against the dollar. Prices were supported by calculations of higher fuel demand due to holidays in China.

The non-GST price of 99.90 ten gram gold stood at Rs 6078 in the Mumbai jewelery market. With GST, the prices were raised by three percent. 99.50 Ten grams of gold was priced at Rs 59837.

The non-GST price of silver .999 per kg closed at Rs 74,075, down by Rs 315 from Monday. With GST, the prices were raised by three percent.

The prices were stable in the Ahmedabad market. The price of 99.90 ten grams of gold was Rs 61900 while the price of ten grams of 99.50 was Rs 61700. Silver 999 was priced at Rs 74000 per kg.

In the world market, one ounce of gold was quoted at 1979 dollars late in the evening. Gold sold off at a higher head after going above $2001. Silver fell below $25 and was trading at $24.57 late in the evening. In addition to the consumer confidence report, quarterly GDP numbers are to be released in the US this week, which is considered important for the decision of the interest rate by the Federal Reserve.

Fund houses have currently adopted a wait-and-see policy. Another precious metal platinum fell by $18 to $1,071 while palladium fell by $45 to $1,494.

In the domestic money market, the dollar remained stable at 81.92 rupees. The pound increased by 30 paise to Rs 102.13 and the euro increased by 31 paise to Rs 90.43. The dollar index remained firm at 101.60.

In global crude, Nymax WTI crude oil prices remained steady at $78.19 per barrel while ICE Brent remained steady at $82.15 per barrel. Prices are being supported by expectations of an increase in fuel demand due to a possible increase in the number of holiday tourists in China.