Gold price slips from 28-month high as demand falters

New Delhi-India ( July 7)  Gold prices slipped from a 28-month high by falling Rs. 150 to Rs. 30,900 per 10 grams at the bullion market today, with demand from jewellers softening, even as the metal rose overseas.

However, silver weekly-based delivery continued to climb as speculators mounted fresh bets on hopes of a further rise in its prices.

Traders said the fall in gold demand from jewellers at the existing higher levels mainly contributed to the fall.

They said, however, a firm trend overseas capped the losses as investors looking for asset haven following market instability in the wake of UK’s vote to leave the European Union lapped up gold.

Globally, gold traded higher by 0.3 per cent to $1,367.45 an ounce in Singapore. The prices have gone up by 29 per cent in 2016 so far.

Silver, too, inched up 0.02 per cent to $20.06 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell Rs. 150 each to Rs. 30,900 and Rs. 30,750 per 10 grams, respectively. It had risen Rs. 400 in yesterday’s trade.

Sovereign, however, saw scattered buying from retailers and traded higher by Rs. 100 at Rs. 23,500 per piece of eight grams.

On the other hand, silver weekly-based delivery spurted Rs. 1,325 to Rs. 47,840 per kg, but silver ready saw some pressure and plunged Rs. 1,300 to Rs. 46,100 due to reduced offtake by consuming industries.

Silver coins surged Rs. 3,000 to Rs. 77,000 for buying and Rs. 78,000 for selling of 100 pieces.

SOURCE:BusinessLine