New Delhi, March 20 (IANS) India’s gold reserves increased by $664 million to $130.68 billion for the week ended March 13, data released by the Reserve Bank of India on Friday showed.

However, India’s total foreign exchange reserves fell by $7.05 billion to $709.76 billion during the week ended March 13.

The decline follows an even sharper drop in the previous week ended March 6, when reserves fell by $11.68 billion to $716.81 billion from $728.49 billion.

The fall has been largely attributed to the central bank’s intervention in the currency market, where it sold dollars to support the rupee amid pressure caused by rising global oil prices and geopolitical tensions linked to the Iran conflict.

Foreign currency assets, which form the largest part of the reserves, decreased by $7.678 billion to $555.568 billion during the reporting week.

These assets also reflect the impact of movements in major global currencies such as the euro, pound and yen against the US dollar.

Meanwhile, precious metals witnessed fluctuations on Friday, the last trading day of the week, amid rising tensions in the Middle East.

According to data from the India Bullion and Jewellers Association (IBJA), 999 purity gold reached Rs 1,47,218 per 10 grams, compared to Rs 1,47,889 on Thursday.

This means a decline of Rs 671 in gold prices in a single day. The price of silver climbed nearly Rs 2,500 per kilogram to Rs 232,364.

On weekly basis, the price of gold has fallen by more than Rs 11,100, while the price of silver has fallen by more than Rs 28,100.

The 999-purity gold on IBJA was priced at Rs 1,58,399 per 10 grams last Friday, while the price of 999 purity silver was Rs 2,60,488 per kilogram.

Meanwhile, gold and silver prices fluctuated significantly on the Multi-Commodity Exchange (MCX).

Around 5:58 p.m., gold for April delivery was trading at Rs 1,46,824 rupees per 10 grams, up 1.29 per cent, or Rs 1,870.

Silver for May delivery was trading at Rs 2,34,112 per kg, up 1.15 per cent, or Rs 2,652.

–IANS

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