After the strengthening of the dollar and reduction in global uncertainties, the demand for gold as a safe investment has decreased, its effect is also visible on its prices. In Delhi on Monday, the price of gold fell by Rs 300 to Rs 1,25,300 per 10 grams.

According to All India Bullion Association, gold of 99.5 percent purity fell by Rs 300 to Rs 1,24,700 per 10 grams (including all taxes). On Friday it closed at Rs 1,25,000 per 10 grams. Gold of 99.9 percent purity had closed at Rs 1,25,600 per 10 grams on Friday. On the other hand, silver price rose by Rs 1,000 to Rs 1,54,000 per kg (including all taxes). On Friday, the price of silver closed at Rs 1,53,000 per kg.

The dollar index, which measures the dollar’s strength against six currencies, rose 0.09 percent to 99.89. This put pressure on bullion prices. In international markets, spot gold fell 0.14 percent to below $4,000 at $3,996.77 an ounce. At the same time, silver spot fell marginally at $ 48.64 an ounce.

Jigar Trivedi, senior research analyst at Reliance Securities, said, “Gold prices fell below $ 4,000 an ounce on Monday. This is due to reduced expectations of interest rate cuts. After the US-China trade agreement, the demand for gold as a safe investment also reduced.”

China has removed long-standing tax incentives on the sale of gold. That could push up consumer prices and weaken demand in one of the world’s largest bullion markets. “Traders will now focus on US macroeconomic developments this week, including ISM PMI data and ADP private payrolls data,” said Saumil Gandhi, senior analyst (commodities), HDFC Securities. The data to be released will provide more signals about monetary policy.