Bullion merchants said sentiments in gold remained extremely weak after it plunged to two-month low in overseas markets as the outlook for higher US interest rates reduced the appeal of the metal as an alternative investment.
Nearly two-thirds of India's gold demand comes from rural areas where jewellery is a traditional store of wealth for millions who have no access to the formal banking system.
Gold prices declined by Rs 30 to Rs 27,370 per ten gram in New Delhi on Friday as demand from jewellers retailers dried up at prevailing levels to some extent amidst a weak global trend.
Silver also rebounded by Rs 140 to Rs 37,050 per kg.
Pure gold of 99.9 per cent purity gained by Rs 120 per 10 gm to close at Rs 30,470 from Rs 30,350.
On the other hand, silver rose on good speculative as well as industrial demand.
'Is the Agniveer scheme or their post-retirement re-employment in paramilitary forces or in the state governments the BJP's answer to the crying need on the job front?' 'Or, even Finance Minister Sitharaman's one-year internship scheme in the public and private sector, is it a permanent solution, either?', asks N Sathiya Moorthy.
Gold prices spurted on the bullion market on Wednesday on sustained buying by stockists influenced by a firming trend in international markets and set a new high at Rs 7,750 per ten gram.
WGC expects demand to revive in H2 on surplus monsoon rains
Traders said continued selling by stockists against slackened demand at prevailing levels mainly kept pressure on gold prices.
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The current upsurge in gold prices placed the metal to a level last seen on April 10.
Tanishq has been pretty much careful to not bet on gold prices.
Adam Peaty hopes to emulate retired American great Michael Phelps, the only swimmer to win gold in the same event at three successive Games, at the Paris Olympics.
Silver fell by Rs 500 to Rs 44,800 per kg on poor offtake by industrial units and coin makers.
Traders said increased buying of gold by stockists and jewellers to meet the rising festive and marriage season demand, amid firming global trend, influenced the sentiment.
Silver recovered by Rs 100 to Rs 36,950 per kg.
Gold recovered 0.5 per cent or $2.90 in the end of last week but the chances of further weakening of dollar has cast a shadow on its future price.
Spot gold was bid up at $1268.30 in early European trading and silver also moved up at $17.42 an ounce.
Indian gold prices have slipped below Rs 30,000 and still counting on the lower side.
Such an economic environment tends to be positive for gold, the ultimate safe-haven asset. Since gold cannot be debased by central banks, it naturally gains in value.
Silver also recovered by Rs 515 to Rs 36,750 per kg on increased offtake by industrial units and coin makers.
Gold plunged by Rs 130 per ten gram at the opening and touched a five-month low of Rs 5180 on the bullion market in Mumbai on Thursday due to heavy selling spree.\n\n\n\n
Spot gold was bid lower at $ 1,298 an ounce in early European trade.
Chirag Mehta, senior fund manager -- alternative investments at Quantum AMC, shares his views.
According to the latest statistics from the Association of Mutual Funds of India, gold ETFs have lost 18 per cent of their investor base since May.
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