Gold declines by Rs 140 on weak global cues; silver recovers
Mumbai-India (Aug 22) Extending losses for the seventh straight session, gold prices fell by Rs 140 to Rs 28,140 per 10 grams in the national capital today on weak cues from the global markets amidst subdued demand from jewellers.
However, silver recovered by Rs 150 to Rs 42,800 per kg on increased offtake by industrial units and coin makers.
Bullion merchants said sentiments in gold remained extremely weak after it plunged to two-month low in overseas markets as the outlook for higher US interest rates reduced the appeal of the metal as an alternative investment.
Gold in New York, which normally determines price trend on the domestic front, tumbled 1.5 per cent to $1,273.40, the lowest since June 18, in yesterday's trade.
Besides, low demand from jewellers and strengthening rupee against the US dollar making imports cheaper, weighed on gold prices, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 140 each to Rs 28,140 and Rs 27,940 per 10 grams, respectively. It had lost Rs 540 in last six sessions.
Sovereign, however, held steady at Rs 24,600 per piece of eight grams.
On the other hand, silver ready recovered by Rs 150 to Rs 42,800 per kg and weekly-based delivery by Rs 95 to Rs 42,170 per kg. The white metal had lost Rs 650 in last two days.
Meanwhile, silver coins continued to be asked at last level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.