Free Press Journal

Gold continues to slide on demand slowdown, silver edges up

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Mumbai: Gold prices dropped further at the domestic bullion market here due to subdued demand from jewellery stockists and retailers in the face of sluggish overseas sentiment. On the other hand, silver gained marginally on the back of stray industrial demand. Standard gold (99.5 purity) slipped by Rs 120 to settle at Rs 25,205 per 10 grams compared to overnight close of Rs 25,325. Pure gold (99.9 purity) also fell by a similar margin to end at Rs 25,355 per 10 grams from Rs 25,475 previously.

However, silver (.999 fineness) added by Rs 10 per kg to finish at Rs 34,775 as against Rs 34,765 yesterday. In worldwide trade, the yellow-metal collapsed to the lowest levels in nearly six years on the back of heavy funds unwinding and also driven by a combination of long liquidation and short-covering even as investors braced for the first US interest rate rise in nearly a decade in December. Heightened caution ahead of the FOMC minutes release later in the day against the backdrop of a modest uptick in inflation also weighed on trade. Spot was almost flat at USD 1,070.00 an ounce in early European trade, while silver quoted soft at USD 14.15 an ounce.