Gold drops by Rs 121 on strong rupee, weak global cues

Gold prices in the national capital dropped Rs 121 to Rs 38,564 per 10 gram on Friday amid a strong rupee and weak international cues, according to HDFC Securities.

Silver was also on a weak ground as it fell Rs 851 to Rs 46,384 per kilogram. In the previous trade, it closed at Rs 47,235 per kilogram.

Gold of 24 Karat had closed at Rs 38,685 per 10 gram here on Thursday.

"Spot gold (Delhi) prices were trading lower amid stronger rupee and weak international cues," according to Devarsh Vakil, head (advisory-PCG), HDFC Securities.

In the international market, gold was ruling lower at USD 1,497.17 per ounce in New York and silver prices were also trading down at USD 17.54 an ounce.

"Gold prices were trading at lowest level of USD 1,497 on COMEX amid ease of trade and geopolitical worries," he added.

The rupee recovered from early lows to trade higher against the US currency in the afternoon session following more than 1 per cent drop in crude oil prices in global markets.