Gold price and silver extend losses on weak global cues, low demand

Mumbai-India (Nov 28)  Gold extended its slide for the second straight day as prices tumbled by Rs 195 to Rs 25,615 per 10 grams at the bullion market on Saturday, taking weak cues from the global market and easing demand from jewellers.

Silver also fell by Rs 150 to Rs 34,100 per kg on poor offtake by industrial units and coin makers.

Bullion traders said a weakening global trend where gold fell to the lowest in five years after speculation that US policy makers will raise interest rates next month helped boost the dollar, curbing the metal’s appeal as an alternative asset.

Besides, muted demand from jewellers and retailers on the domestic front weighed on the precious metals, they said.

Globally, gold declined 1.3 per cent to settle at $1,056.20 an ounce in New York in Friday’s trade. Earlier, the price fell to $1,051.60, the lowest since February 2010. Silver also fell 0.9 per cent to $14.04 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped Rs 195 each to Rs 25,615 and Rs 25,465 per 10 grams, respectively. The precious metal had shed Rs 10 on Friday.

Sovereign followed suit and eased by Rs 100 to Rs 22,100 per piece of eight gram.

Tracking gold, silver ready declined by Rs 150 to Rs 34,100 per kg and weekly-based delivery by Rs 125 to Rs 33,700 per kg.

However, silver coins continued to be traded at previous level of Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

Source: TheHindu