Gold, Silver Extend Losses on Sustained Selling
MUMBA-INDIA (Sept 21) The prices of both precious metals, gold and silver, fell further in the national capital today on sustained selling by stockists on the back of sluggish demand amid a weak global trend.
While gold plunged by Rs 280 to Rs 30,500 per ten gram in continuation with a loss of Rs 30 yesterday, silver dropped by Rs 1,600 to Rs 49,500 per kg after easing Rs 100 in the previous session on poor offtake by jewellers and industrial units.
Traders said sustained selling by stockists against sluggish demand due to ongoing "Sharads," an inauspicious fortnight in Hindu mythology for making fresh purchases, mainly pulled down the prices.
They said trading sentiment dampened further on weak global trend as a Federal Reserve policy maker said a "small taper" in stimulus may occur in October reduced demand for the precious metals as an alternate investment.
Gold in overseas markets, which normally set price trend on the domestic front, fell by 2.7 per cent to USD 1,332.50 an ounce, the biggest drop since July 5. Silver fell 5.9 per cent to USD 21.92 an ounce, the biggest drop since June 20.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 280 each to Rs 30,500 and Rs 30,300 per ten gram, respectively. It had shed Rs 30 yesterday.
Sovereign followed suit and declined by Rs 100 to 25,100 per piece of eight gram.
Silver ready and weekly-based delivery tumbled by Rs 1,600 each to Rs 49,500 per kg, respectively. The white metal had lost Rs 100 in last trade.
Silver coins also dropped by Rs 1000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.