Gold extends losses, down Rs 120 on global cues, weak demand

New Delhi: Continuing its declining trend for the third day, gold today fell by another Rs 120 to Rs 26,850 per ten gram in the national capital, tracking weak cues from the global market where the precious metal was trading at an eight-month low.

Besides, subdued demand from jewellers in view of ongoing “Shraadh” – considered as inauspicious days – and diversion of funds towards the rising equity markets too put pressure on prices, traders said.

Silver also dropped for the fifth straight day and declined further by Rs 375 to Rs 39,250 per kg on reduced offtake by industrial units and coin makers.

Sentiment remained weak as gold held near an eight month low in global markets as the outlook for higher US borrowing costs strengthened the dollar, damping demand for a store of value.

Gold in Singapore, which normally sets price trend on the domestic front, traded 0.60 per cent lower at USD 1,208.40 an ounce. Silver also fell 0.3 per cent to USD 17.78 an ounce, the lowest level since August 2010.

In Delhi, gold of 99.9 and 99.5 per cent purity fell further by Rs 120 each to Rs 26,850 and Rs 26,650 per ten gram respectively. It had lost Rs 480 in the previous two sessions.

Sovereign, however, held steady at Rs 24,200 per piece of eight gram in limited deals.

In a similar fashion, silver ready remained under selling pressure and surrendered Rs 375 to Rs 39,250 per kg and weekly-based delivery by Rs 805 to Rs 38,895 per kg after it sank to four-year low in overseas market. The white metal lost Rs 1,975 in the last four days.

Silver coins plunged by Rs 1,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.

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