Gold price extends weakness on global cues, subdued demand

New Delhi-India (May 23)  Gold prices fell further by Rs 150 to Rs 27,450 per ten grams at the bullion market on Saturday dragged down by a weak trend overseas and sluggish demand from jewellers.

Silver also declined by Rs 375 to Rs 38,800 per kg on reduced offtake by industrial units and coin makers.

Marketmen attributed the fall in gold prices to a weak global trend as strengthening dollar reduced its demand amid gains in US inflation boosted concern that the economy is doing well enough for the Federal Reserve to start lifting interest rates.

Besides, low demand from jewellers too kept pressure on the precious metal prices, they said.

Gold in New York, which normally sets price trend on the domestic front, traded a shade lower at USD 1,204 an ounce, while silver shed 0.5 per cent to USD 17.05 an ounce in Friday’s trade.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 150 each to Rs 27,450 and Rs 27,300 per ten gram, respectively.

Sovereign, however, continued to be traded at last level of Rs 23,800 per piece of eight gram in scattered deals.

Following gold, silver ready dropped by Rs 375 to Rs 38,800 per kg and weekly-based delivery by Rs 370 to Rs 38,925 per kg.

On the other hand, silver coins maintained a steady trend at Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces.

Source: TheHindu