Gold prices fall throughout week after starting on high note; domestic demand remains weak

Gold prices fell in domestic markets through the week and demand for the yellow metal in India remained low this week despite a fall in prices. Jewellers are hoping the upcoming wedding and festive season will be able to revive demand for the precious yellow metal in the domestic market. "Sentiment is weak. Retail demand is lower than normal as many consumers are preserving cash," said a Mumbai-based bullion dealer with a private gold importing bank told Reuters.

Gold began the week on a high note after the price rose by ₹82 to ₹45,952 per 10 gram, in tune with price in international markets. In contrast, silver price took a tumble of ₹413 to trade at ₹61,907 per kilogram. In the international market, gold made gains and traded at $1,790 per ounce and silver traded flat at $23.66 per ounce.

The price for the yellow metal fell marginally by ₹36 to ₹45,888 per 10 gram on Tuesday as the international market also saw a depreciation in the value of gold. Silver, however, bucked the trend and gained ₹73 to trade at ₹61,911 per kg. In the international market, gold was trading lower at $1,788 per ounce and silver was flat at $23.68 per ounce.

Gold saw a jump of ₹438 to ₹46,214 per 10 gram on Wednesday, mirroring international gains made in gold prices overnight. Silver also gained ₹633 to ₹62,140 per kg on the same day. In the international market gold and silver traded flat at $1,802 per ounce and $23.79 per ounce respectively.

On Thursday, gold prices took a dive of ₹491 to trade at ₹45,735 per 10 gram. Silver also fell by ₹724 to ₹61,541 per kilogram. Overseas in the US, gold prices fell to trade at $1,786 per ounce and silver fell to trade at $23.60 per ounce.

The precious yellow metal could not sustain the high note it started the week with and took another tumble on Friday. Gold prices fell by ₹1,130 to trade at ₹45,207 per 10 gram, and silver fell by ₹708 to ₹60,183 per kg. In the international market gold prices fell to trade at $1,762 per ounce and silver traded flat at $ 22.95 per ounce.