Gold takes global cues, falls 3.62% through the week

Silver fell 2.25% to close at Rs 45,000

Standard gold eased in the benchmark Zaveri Bazaar here on Saturday, as geopolitical concerns related to Ukraine eased. Gold prices fell 1.36 per cent to settle at Rs 29,670/10g on Saturday, compared with Rs 30,080/10g on Friday. Silver fell 2.25 per cent to close at Rs 45,000.

“The uncertainty erupted because geopolitical tensions between Russia and Ukraine eased, following an amicable settlement between the two countries. Consequently, bullion lost its safe-haven appeal,” said Naveen Mathur, associate director, Angel Broking. Despite the strong bullish sentiment, gold failed to breach the $1,400 level early this week, after Crimean voted in favour of joining Russia.

Also, the expected recovery in the US has strengthened the dollar against major global currencies. “The dollar’s movement would be interesting to see for understanding the trend in the bullion market,” Mathur said.

Spot gold fell 3.62 per cent through the week. In London, gold fell 3.5 per cent to close at $1,334.7/oz on Friday. Gold futures for delivery in April fell 3.1per cent through the week to settle at $1,336/oz on the commodity exchange division of the New York Mercantile Exchange on Friday. Silver futures for delivery in May fell 5.2 per cent to close at $20.31/oz on Friday. “The uptrend in bullion looks limited in the absence of supportive factors,” said Jayant Manglik, president, Religare Securities. In the domestic market, silver fell 6.44 per cent through the week, in tandem with a 5.04 per cent fall to $20.33/oz in London.