Gold prices today fall after rising above ₹49,000 per 10 gram

Gold vaults $1,800 to highest since September 2011

Silver futures on the exchange also followed the yellow metal's rally and touched a high of Rs 51,480 per kg on Thursday.

Spot gold rose as much as 1.3% to $1,818.02 an ounce, the highest intraday since September 2011, and traded at $1,811.67 as of 1:48 p.m.in NY.

Global gold prices eased as risk sentiment improved ahead of U.S. services sector data, although losses were capped by worries over surging coronavirus cases in some USA states.

August gold contracts were trading higher by 0.01 percent at Rs 49,166 per 10 gram at 0920 hours.

"Though the rupee has largely stabilised against the United States dollar, which has lent support to gold prices, the global market is not under our control, so the price in Pakistan is also rising", he said.

Domestic stock markets jumped more than 1 per cent to four-month highs amid gains in heavyweight HDFC Bank, after the country's largest private sector lender reported strong loan growth despite the COVID-19 crisis, while hopes of more stimulus to sustain a global economic recovery lifted sentiment.

In Delhi, 22-carat gold prices slid to Rs 47,250 per 10 gm while 24-carat was retailing at Rs 48,450.

Gold gained around 0.75 percent and settled at $1820.60 per troy ounce and silver gained around 2.50 percent to settle at $19.16 per troy ounce.

"Gold is having a strong support at $1,796 per troy ounce /Rs 48,800 on a closing basis". A weak dollar also helped bullion prices. Today it surpassed the previous high of Rs 48,982 per 10 grams, hit on July 1. "Strong economic data from US, China, and European Union also pressurized the yellow metal prices", said Ajay Kedia, director, Kedia Commodity Comtrade.

It should be noted that the last time that gold traded above $1,800 an ounce was in September 2011, but it ended that year at $1,565 an ounce.

However, stability in equity markets has kept a check on the upside. If the break holds, that may be enough to attract interest from momentum traders, which could push the metal to its all-time high above US$1,920.

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