Gold prices decline on global cues, silver faces selling heat

Mumbai-India (Sept 15)  Gold prices edged lower by Rs 10 to Rs 26,350 per 10 grams at the bullion market on Tuesday, taking weak cues from overseas markets amid subdued demand from jewellers at the domestic spot market.

Silver extended losses for the fifth straight day and lost another Rs 300 at Rs 34,500 per kg on selling pressure. Traders said a weak trend overseas where gold traded at over one-month low ahead of the much-anticipated US Fed's two-day policy meeting starting Wednesday mainly kept pressure on the precious metal's prices.

Globally, gold retreated 0.2 per cent to $1,106.65 an ounce in Singapore. Besides, sluggish demand from jewellers and retailers dampened sentiment. In the national capital, gold of 99.9 per cent and 99.5 per cent purity eased Rs 10 each to Rs 26,350 and Rs 26,200 per 10 grams, respectively.

Sovereign, however, remained steady at Rs 22,100 per piece of eight grams. On the other hand, silver ready remained under selling pressure and fell further by Rs 300 to Rs 34,500 per kg and weekly-based delivery by Rs 200 to Rs 34,700 per kg. Silver coins also dropped by Rs 1,000 to Rs 49,000 for buying and Rs 50,000 for sale of 100 pieces.

Source: Business-Standard