Gold price on Thursday fell to Rs 49,000 per 10 gm after remaining unchanged at Rs 49,330 for two straight days. Silver price also fell by Rs 300 to trend at Rs 66,200 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold dropped to Rs 47,900 per 10 gm, while in Chennai it stood at Rs 46,170. In Mumbai, the rate dropped to Rs 48,000 according to the Good Returns website. The price of 24-carat gold in Chennai was at Rs 50,570 per 10 gm.
In the international market, Gold prices fell to a more than one-week low on Wednesday, pressured by concerns over the US stimulus bill and strength in the dollar as markets awaited the Federal Reserve’s latest policy decision.
Spot gold fell 0.3 per cent to $1,845.61 per ounce by 1:41 p.m. EST (1841 GMT), having earlier touched its lowest since January 18. US gold futures settled down 0.6 per cent at $1,844.90.
“Ahead of the Federal Open Market Committee’s statement, you are having lower equities and the dollar is catching a bit of a bounce,” which is weighing on the gold market, said Bob Haberkorn, senior market strategist at RJO Futures.
The dollar rebounded to a more than one-week high against rivals, making gold costlier for investors holding other currencies.
“The $1.9 trillion (U.S. stimulus) was pretty ambitious and I don’t think (President) Biden has the support to pass it,” Haberkorn added. “That is another reason why gold is not trying to get back above $1,900.”
The Biden administration’s stimulus plan faced strong opposition from Republicans over the size of the package.
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