MUMBAI, India — Gold prices in India edged lower Thursday as a stronger U.S. dollar weighed on global bullion markets, while silver recovered from early losses amid bargain buying. The Indian rupee meanwhile fell to a new record low against the dollar.
On the Multi Commodity Exchange, gold for April delivery was trading at Rs 1,61,665 per 10 grams, down Rs 124 or 0.08 percent.
The contract had opened higher at Rs 1,62,799 per 10 grams compared with the previous close of Rs 1,61,789, but later gave up its gains as global sentiment weakened.
Analysts said strong buying interest remains visible in the Rs 1,56,000 to Rs 1,57,000 range, which is seen as a key support zone.
“As long as prices hold above this base, the medium-term bullish outlook remains intact. A sustained breakout above Rs 1,65,000 could revive bullish momentum toward Rs 1,75,000–Rs 1,80,000,” an analyst said.
Silver prices moved higher during the session. MCX silver for May futures rebounded after early losses and was trading at Rs 2,71,065 per kilogram, up Rs 2,574 or 0.96 percent.
The contract opened at Rs 2,69,212 per kilogram, slightly higher than the previous close of Rs 2,68,491.
The dip in gold prices comes as international bullion markets face pressure from a stronger U.S. dollar and reduced expectations of near-term interest rate cuts.
A stronger dollar typically weighs on gold demand because it makes dollar-denominated commodities more expensive for investors using other currencies.
In global markets, spot gold slipped 0.2 percent to $5,165.73 per ounce, while U.S. gold futures for April delivery declined 0.2 percent to $5,171.40 per ounce. Spot silver remained largely steady at $85.82 per ounce.
Meanwhile, the Indian rupee fell to a fresh record low on Thursday as rising crude oil prices and continued strength in the U.S. dollar pressured the currency.
The rupee weakened 0.3 percent to 92.3575 against the dollar, surpassing the previous record low of 92.3475 recorded earlier this week. (Source: IANS)
