Gold extends losses on subdued demand, global cues

Mumbai-India (Dec 8)  Extending losses for the third straight day, gold prices fell by another Rs 25 to Rs 26,650 per ten grams at the bullion market in the national capital today owing to slackened demand from jewellers and retailers amid a weakening global trend.

 Silver also eased by Rs 50 to Rs 36,650 per kg on reduced offtake by industrial units and coin makers.

 Traders said besides low demand from jewellers and retailers, a weakening global trend - amid the US employment data and strengthening dollar reducing appeal for the precious metals - kept pressure on gold prices.

 Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.4 per cent to USD 1,187.27 an ounce and silver by 0.8 per cent to USD 16.15 an ounce, the lowest level since December 2.

 In Delhi, gold of 99.9 and 99.5 per cent purity fell further by Rs 25 each to Rs 26,650 and Rs 26,450 per ten gram respectively. It had lost Rs 225 in the past two days.

Sovereign, however, held steady at Rs 23,700 per piece of eight gram.

 In a similar fashion, silver ready traded lower by Rs 50 to Rs 36,650 per kg and weekly-based delivery by Rs 75 to Rs 36,625 per kg.

 Meanwhile, silver coins continued to be asked at previous level of Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

Source: BusinessStandard