Free Press Journal

Gold extend losses; tumbles Rs 235 on global cues, low demand


Gold price Down

New Delhi: weak overseas trend and slackened demand from jewellers, gold continued its slide for the third straight day as prices fell by Rs 235 to Rs 26,575 per ten gram at the bullion market today. Silver also slipped below the Rs 35,000-level by plunging Rs 900 to Rs 34,700 per kg on poor offtake by industrial users and coin makers.

Traders said weak global cues on expectations that the US Federal Reserve will raise rates this year, countering demand for a haven, mainly dampened sentiments here. Globally, gold lost 0.6 per cent to USD 1,125.72 an ounce, its one-week low and silver retreated 0.5 per cent to USD 14.52 an ounce after a 3.4 per cent slump on Monday.

Besides, low demand from jewellers and retailers due to ongoing “Shraddhas”, an inauspicious fortnight in Hindu mythology for making fresh purchases, kept the metal under pressure. In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs 235 each to Rs 26,575 and Rs 26,425 per ten gram, respectively. It had lost Rs 440 in last two days.

Sovereign also shed Rs 50 at Rs 22,350 per piece of eight gram. Following gold, silver ready recorded a hefty fall of Rs 900 to Rs 34,700 per kg and weekly-based delivery by Rs 1,050 to Rs 34,830 per kg.

In line with overall trend, silver coins nosedived by Rs 1,000 to Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.