Rupee stands strong while Gold prices drop by Rs 372
In tandem with gold prices, silver also dropped by Rs 1,273 to Rs 49,187 per kilogram.
New Delhi: Gold prices fell by Rs 372 to Rs 39,278 per 10 gram in the national capital on Friday due to weak demand and strong rupee, according to HDFC Securities.
In tandem with gold prices, silver also dropped by Rs 1,273 to Rs 49,187 per kilogram here.
"Gold declined on weak investment demand and stronger rupee. The spot rupee gained by 21 paise against the dollar during the day," Tapan Patel, senior analyst (commodities), HDFC Securities said.
In the international market, gold prices fell to USD 1,510 per ounce in New York, while silver also dropped to USD 18.30 an ounce.
"Bullion prices witnessed correction on Thursday evening with easing of risk sentiments after stronger than expected data from the US," Patel said.
Gold prices lost safe-haven appeal on improved investment sentiments with rally in global equity indices after the US reported stronger factory orders and non-manufacturing PMI data while markets await key payroll data on Friday, he added.
In Delhi, gold prices for 24 karats had closed at Rs 39,650 per 10 gram on Thursday, while silver had ended at Rs 50,460 per kilogram.
The Indian rupee appreciated by 17 paise to 71.67 against the US dollar in early trade on Friday as gains in the domestic equity market and resumption of US-China trade talks in October strengthened investor sentiments.