Gold price in overseas markets, moved marginally lower on Friday but logged its biggest weekly gain in nearly two years on easing fears of an early end to US monetary stimulus that has boosted bullion’s appeal as a hedge against inflation.
The metal has gained 7.8 percent for the week, its biggest weekly climb since October 2011 when it rose 6.2 percent.
The metal rallied after Fed Chairman Ben Bernanke on Wednesday said a highly accommodative policy was needed for the foreseeable future as inflation remains low and the employment rate may be overstating the health of the labour market.
Minutes from the June Fed policy meeting also showed that about half of the bank’s policymakers felt the stimulus programme should be brought to a halt by year end, but many wanted reassurance the US jobs recovery was on solid ground before any policy retreat.
Spot gold last traded down 0.2 percent at USD 1,282.06 an ounce, snapping a four-day winning streak.
In New York, gold for August delivery edged lower USD 2.30 or 0.2 percent to settle at USD 1,277.60 an ounce on the Comex division of the NYMEX. For the week, prices were 5.4 percent up. That was their first weekly gain in four weeks, and the biggest weekly percentage climb since the week ended Oct. 28, 2011.
In Delhi spot market, gold and silver prices extended losses in the national capital Saturday on sustained selling by stockists amid a weakening global trend.
While gold fell by Rs 50 to Rs 27,250 per ten grams, silver shed Rs 120 to Rs 41,410 per kg.
In the national capital, gold of 99.9 and 99.5 percent purity fell further by Rs 50 each to Rs 27,250 and Rs 27,050 per ten grams, respectively. It had shed Rs 25 yesterday. Sovereign followed suit and traded lower by Rs 50 to Rs 24,150 per piece of eight grams.
In line with a general weak trend, silver declined by Rs 120 to Rs 41,410 per kg and weekly-based delivery by Rs 70 to Rs 41,460 per kg. The white metal had lost Rs 220 in last trade.
On the other hand, silver coins held steady at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces in restricted buying at prevailing higher levels.
