Gold ends year on weaker note, plunges by Rs 370

Ending the year 2018 on a weaker note, gold prices Monday plunged by Rs 370 to Rs 32,270 per 10 gram at the bullion market here due to considerable fall in demand from local jewellers amid muted trend overseas.

In line with the gold prices, silver also dipped Rs 125 to Rs 39,100 per kg on subdued fag-end demand from industrial units and coin makers.

Traders said considerable decline in demand from local jewellers and retailers at the existing higher levels amid flat global bullion markets pulled down the gold prices.

Besides, stronger rupee against the dollar making imports cheaper exerted pressure on the prices of the precious metal, they said.

The rupee Monday jumped 21 paise to touch a high of 69.74 to a dollar (intra-day), as compared with the previous close of Rs 69.95.

Moreover, the marketmen also said shifting of funds towards the rising equity market was another factor for decline in the gold prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 370 each to Rs 32,270 and Rs 32,120 per 10 gram, respectively. The gold prices, however, had risen by Rs 190 in the previous two sessions.

For the year, the gold prices jumped by Rs 1,870, or 6.15 per cent, as compared with the price of Rs 30,400 per 10 gram on December 30, 2017. Silver, on the other hand, lost Rs 880, or 2.2 per cent, against Rs 39,980 per kg as on December 30, 2017.

Globally, it traded nearly flat at USD 1,279.41 an ounce Monday in New York, showing a growth of over 11 per cent from the previous year's close of USD 1,150.90 an ounce.

Silver also traded almost flat at Rs 15.36 an ounce Monday in New York. It, however, indicates a fall of 8.98 per cent as against USD 16.91 an ounce a year ago.

Sovereign gold Monday held steady at Rs 25,200 per piece of 8 gram.

Silver ready also fell by Rs 125 to Rs 39,100 per kg Monday, while weekly-based delivery was marginally down by Rs 6 to Rs 38,700 per kg.

Silver coins were, however, unchanged at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.