Gold and silver futures fell in the domestic market amid a surge in the rupee against the dollar on Wednesday. Gold futures fell to Rs 47,095 per 10 grams for the third consecutive day on MCX. Coming to silver, it fell 0.33 percent to Rs 63,156 per kg. Gold prices have been fluctuating this month. It had come down to a four-month low of Rs.45,600. The yellow metal is still below the previous year's highest level (Rs. 56,200 per 10 grams) with Rs. 9,105 less.
The rupee strengthened 29 paise, to close at a nearly 12-week high of 73 against the US dollar on Tuesday, continuing its recent surge. Gold prices in India include 10.75 percent import duty and 3 percent GST. Gold remained flat in global markets today. Spot gold was priced at $1,813.93 an ounce. Silver was at $23.88 an ounce in other precious metals. Platinum rose 0.3 percent to $1015.49.
It may be noted that traders and investors are on alert amid growing difficulties due to the spread of delta variant cases. Uneven global economic recovery and rupee fluctuations against the dollar affect the prices of precious metals. Gold is seen as a defense against inflation and currency shortages. The holdings of the world's largest gold-backed exchange-traded fund or gold ETF, SPDR Gold Trust, fell to a four-month low of 1,000.26 tonnes.