Gold price extends losses on global cues, sluggish demand
Mumbai-India (July 2) Gold prices continued to slide for the second straight day and fell by Rs 140 to Rs 26,710 per ten grams at the bullion market today largely in tandem with a weak global trend and slackened demand from jewellers.
Silver followed suit and shed Rs 100 to Rs 36,050 per kg.
Traders attributed persistent fall in the precious metals to a weakening global trend as signs of an improving US economy boosted prospects of higher borrowing costs, reducing their demand as an alternative investment.
Besides, easing demand from jewellers at the spot market dampened sentiments, they said.
Gold in New York, which normally sets price trend on the domestic front, fell 0.64 per cent to USD 1,172.60 an ounce and silver by 0.57 per cent to USD 15.67 an ounce in yesterday’s trade.
In the national capital, gold of 99.9 and 99.5 per cent purity dropped by Rs 140 each to Rs 26,710 and Rs 26,560 per ten grams, respectively. It had lost Rs 100 yesterday.
Sovereign, however, continued to be asked at previous level of Rs 23,300 per piece of eight grams in limited deals.
Following gold, silver ready declined by Rs 100 to Rs 36,050 per kg and weekly-based delivery by Rs 150 to Rs 35,560 per kg.
On the other hand, silver coins maintained a steady trend at Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.