Gold prices fall to near lowest in 2 months

NEW DELHI, Sept 05 (The Economic Times): Gold and silver prices remained weak today in Indian market amid a weak global trend in precious metals.

On MCX, the yellow metal futures today fell 0.4 per cent to near two-month low of Rs 50,200 per 10 gram while silver tumbled to multi-year low of Rs 52,395 per kg. In global markets, gold fell to six-week low amid a firm US dollar. The yellow metal was down 0.3 per cent to $1,706.31 an ounce as the dollar index rose 0.29 per cent to 108.983.

Though the gold is typically seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding non-yielding bullion and boosts the dollar.