Gold & silver drop on subdued demand, weak global cues

Mumbai-India  (May 23)  Extending its fall for the fifth straight session, gold drifted further at the bullion market here today on subdued offtake by jewellery stockists and traders amid bearish overseas cues.

Silver slipped due to renewed speculative selling as well as reduced industrial buying.

Standard gold (99.5 purity) declined by Rs. 70 to close at Rs. 27,105 per 10 grams from Friday’s closing level of Rs. 27,175.

Pure gold (99.9 purity) also moved down by a similar margin to end at Rs. 27,255 per 10 grams from Rs. 27,325.

Silver (.999 fineness) tanked by Rs. 310 to finish at Rs. 39,315 per kg compared with Rs. 39,625 yesterday.

Globally, the yellow metal settled slightly lower yesterday as traders anticipated a rate hike by the Federal Reserve later this year.

Gold had yesterday gained from a better-than-expected CPI reading for April in the US.

Gold for June delivery had settled down at $1,204 an ounce on the Comex division of the NYMEX late yesterday and July silver contract had also ended lower at $17.051 an ounce.

Source: TheHindu