Gold price drops on global cues, low demand; silver remains weak

New Delhi-India (Jun 20)  Snapping its two-day gaining streak, gold prices fell by Rs 100 to trade at Rs 27,100 per ten grams at the bullion market today, tracking a weak global trend along with easing demand from jewellers.

 Silver remained under selling pressure and shed another Rs 25 to Rs 37,025 per kg.

 Traders said besides a weak global trend, fall in demand from jewellers at existing levels, mainly capped the rising trend in the precious metal.

 Globally, gold fell by 0.14 per cent to USD 1,200.30 an ounce and silver by 0.46 per cent to USD 16.08 an ounce in New York in yesterday's trade.

 Also, an appreciating rupee against the dollar that made the imports cheaper, also influenced the sentiments to some extent, they said.

 At forex market, the rupee closed at one-month high of 63.55 against the US currency.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 100 each to Rs 27,100 and Rs 26,950 per ten gram, respectively. It had gained Rs 270 in the previous two sessions.

 Sovereign also declined by Rs 100 to Rs 23,300 per piece of eight gram.

 Following gold, silver ready declined further Rs 25 at Rs 37,025 per kg and weekly-based delivery by Rs 255 to Rs 36,680 per kg.

 On the other hand, silver coins continued to be asked at previous level of Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.

Source: BusinessStandard