Gold price falls by Rs 200 to trade at one-week low at bullion market

Mumbai-India (Aug 22)  Continuing downward spiral for the second straight session, silver prices on Friday tumbled by Rs 775 to Rs 45,200 per kg at the bullion market, tracking a weak trend overseas amid poor offtake by domestic industrial units.

Gold also drifted lower by Rs 200 to trade at one-week low of Rs 31,050 per ten grams owing to muted demand from jewellers.

Sentiment was dampaned largley in line with a weak trend overseas as the dollar strengthened on US interest rate hike hopes this year after Federal Reserve Vice Chairman Stanley Fischer said country's eocnomy was picking up, eroding demand for the the precious metals as a haven investment, bullion traders said.

Besides, poor off-take by industrial units and coin makers at domestic spot market weighed on silver prices, they added.

Globally, silver fell 2.03 per cent to $18.86 an ounce and gold retreated 0.59 per cent to $1,333.20 an ounce in Singapore.

In the national capital, silver ready remained under selling pressure and tumbled by Rs 775 to Rs 45,200 per kg and weekly-based delivery cracked below Rs 45,000-mark by losing Rs 960 to Rs 44,485 per kg.

Silver coins, too plummetted by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

Gold of 99.9 per cent and 99.5 per cent purity lost Rs 200 at Rs 31,050 and Rs 30,900 per 10 grams, respectively, a level last seen on August 12.

Sovereign, too, shed Rs 100 to Rs 24,200 per piece of eight grams.

Source: BusinessToday