Traders attributed the recovery in gold prices to a better trend in global markets.
Silver has been quoting at a premium in India since mid-March because of huge scarcity.
If there is turmoil in currencies, gold can shoot up sharply, says author of Arora Report.
Silver too advanced by Rs 100 to 38,700 per kg.
The month of March could be worst in many years, with imports estimated only around 18 tonnes amid the coronavirus pandemic and the nationwide lockdown, said an industry player. The import in March 2019 was 72.5 tonnes, according to the GFMS data.
Many of them are housewives looking to increase income in households struggling with the economic devastation caused by COVID-19.
In August 2014, imports stood at $ 2.06 billion. Higher imports will have adverse bearing on India's current account deficit (CAD).
Silver also declined by Rs 180 to Rs 39,175 per kg.
Traders said a weakening trend in the precious metals overseas after the Federal Reserve pressed on with cuts to stimulus amid signs of a recovery in the US, reducing demand for the safe haven, mainly put pressure on the gold prices in New Delhi.
Gold edged higher by 0.19 per cent to $1,225.80 an ounce
Gold prices breached the crucial Rs 25,000-level for the first time ever in history, tracking strong trends in global markets where financial uncertainty increased the metal's appeal as a safe investment haven.
Gold drops Rs 110 on macro factors.
Gold prices on Friday fell by another Rs 25 to Rs 27,225 per ten grams at the bullion market in the national capital due to slackened demand at prevailing levels from jewellers and retailers amid a weak trend overseas.
Traders said apart from buying by retailers for the coming festive season, a better trend in the global market mainly led to rise in gold prices.
Any shift in investor sentiment may result in speculators fleeing the gold market, driving its price down sharply, quickly. One significant risk for gold is a near-term reversal in the dollar, which recently fell to a two-year low.
Dhanteras' buying seemed to have been sparked by the belief that prices would remain firm
Silver rose by Rs 50 to Rs 36,050.
Traders said stockists selling against sluggish demand mainly led to decline in gold prices.
Falling for the sixth straight day, gold prices drifted by another Rs 70 to trade at fresh two-month low of Rs 26,680 per ten grams at the bullion market on Friday, tracking a weak global trend amid slackened demand from jewellers and retailers.
For the second straight year, the gems and jewellery industry is set for almost a washout of business on Akshaya Tritiya as only about 10 per cent of pre-Covid sales of 2019 are expected on Friday amid the raging pandemic sapping footfalls and purchasing power of people.
Gold is often favoured as a hedge against economic and financial uncertainty
.jpg)
Gold prices have eased off in recent months after the formation of a new government bringing in positive sentiment back to the stock market.
Traders said some buying activity by jewellers and retailers mainly kept gold prices steady.
Risk-averse investors can hold up to 10 per cent of their portfolio in gold, while aggressive ones can keep five per cent.
Gold prices are seen heading northwards on improved demand.
At a time when the whole world is going ga-ga over stocks and debt is too easy to borrow, do not forget gold, says Anil Rego.
In Delhi, gold of 99.9 and 99.5 per cent purity gained Rs 110 each to Rs 27,210 and Rs 27,010 per 10 gram, respectively.
Sentiments remained bearish as gold fell to 16-week low in the overseas markets as positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus which has dimmed the metal's appeal.
Global gold prices held below $1,200 an ounce this week.
Customs officials are busy at ports and airports, scanning passengers to ensure that COVID-19 virus-affected people are traced. So, officials are not able to focus much on baggage checking. This could lead to more gold getting smuggled into the country as luggage check at airports is now random unlike earlier where every bag was checked thoroughly.
Silver gained Rs 350 to Rs 36,550 per kg on increased offtake.
According to jewellers and MMTC-PAMP India, gold demand has picked up in the wake of good monsoon and favourable price levels. There was positive response and more footfalls.
Globally, gold advanced 0.3 per cent to USD 1,179.35 an ounce in Singapore.
Silver also eased by Rs 320 to Rs 35,780 per kg.
Gold prices recovered by Rs 85 to Rs 26,625 per 10 grams at the bullion market.
Silver was also up by 1.63 per cent to $15.92 an ounce.
Silver also traded lower by Rs 100 to Rs 37,200 per kg.
Silver held steady at Rs 37,300 per kg.
.jpg)
Gold, which had surged after government decided to increased import duty, lost Rs 125 to Rs 29,700 per 10 grams.
Though gold prices have been softening in the last couple of weeks, in the past decade, gold has appreciated around seven-fold in value. Here's the answer to if you should buy, hold or sell gold now.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances