Gold prices slip by Rs 149 on weak global cues

New Delhi: Gold prices on Friday fell Rs 149 to Rs 38,875 per 10 gram in the national capital on the back of weak global cues, according to HDFC Securities.

In the previous session, the precious metal closed at Rs 39,024 per 10 gram.

"Spot gold prices for 24 karat gold in Delhi traded lower by Rs 149 with selling in international gold prices and rupee appreciation. The spot rupee was trading 23 paisa stronger against dollar during the day gaining for the second consecutive day," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

Silver prices also shed Rs 473 to Rs 45,375 per kg from Rs 45,848 per kg in the previous session. In the international market, gold was trading at USD 1,466 an ounce and Silver at USD 16.86 per ounce in New York.

Prices in the global market fell after the White House Economic Advisor Larry Kudlow said the US was getting close to a trade agreement with China, Patel said. This development led to recovery in equity indices and kept the yellow metal prices subdued.

Increased global economic confidence might lead to decline in gold's demand as safe haven due to a likely trade deal between the US and China, Hareesh V- Head Commodity Research at Geojit Financial services - said.

"Hopes of an immediate trade deal and a bunch of recent positive economic releases eased apprehensions of further economic slowdown and boosted the market optimism. Increased global economic confidence may reduce gold's safe haven demand gradually.

However, growing geopolitical tensions are likely to offer lower level support to prices. On the domestic side, a weak rupee would limit major selloffs in the counter," he said.