Gold prices fell by Rs 669 to Rs 68131 per 10 grams in the local market on Monday (July 29) evening session, owing to sluggish demand from jewellers. According to the India Bullion and Jewellers Association Ltd, the precious metal with 99.9 per cent purity closed for Rs 68,131 per 10 grams today. Gold of 99.5 per cent purity fell from Rs 67,525 to Rs 67,858 per 10 grams. 

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Silver also declined Rs 921 to Rs 81,271 per kg due to the less offtake by coin makers and industrial units. This marks the biggest single-day fall in silver prices in 2024. It ended at Rs 82,192 per kg in the previous evening session. The prices mentioned for gold and silver are without GST.

Traders said reduced demand from jewellers as well as retail buyers led to the fall in gold prices. 

"Last week, Finance Minister Nirmala Sitharaman in the Budget announced a customs duty cut from 15 per cent to 6 per cent, weighing on the domestic front."

Post the cut in import duty, gold premiums in India jumped to their highest level in a decade," Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, said.

However, on the global front, Comex gold is trading at USD 2,438.50 per ounce, up by USD 10.60 per ounce.US Federal Reserve policymakers got fresh evidence of progress on their battle against inflation, fuelling expectations they will use their meeting to signal interest rate cuts starting in September, Modi said.

Focus this week will be on Fed policy meeting, US Consumer confidence, factory orders, and jobs market data, he added. 

The US Fed meeting will start on Tuesday and conclude on Wednesday. In addition, silver was marginally higher at USD 28.28 per ounce in New York.

"Gold has started the week in positive with prices in the international market moving above USD 2,400 in early trades, on renewed safe-haven buying due to possible escalation in the Middle East tensions with additional support from a steady dollar against major currencies."

Also focus remains on the three key central bank meetings this week, starting with the Bank of Japan, US Federal Reserve, and Bank of England," Pranav Mer, Vice President, EBG - Commodity & Currency Research at JM Financial Services, said.

With agency inputs