Gold, silver prices slide further in India on weak demand

MUMBAI-INDIA (July 7)  Gold prices weakened further at the bullion market here today due to lack of local buying support amid reduced demand from stockists and jewellers. Silver also slumped on heavy speculative selling coupled with lower industrial off-take.

Standard gold of 99.5 per cent purity fell by Rs40 to finish at Rs26,150 per 10 grammes from Friday’s closing level of Rs 26,190.

Pure gold of 99.9 per cent purity moved down by Rs 45 to close at Rs26,285 per 10 grammes from Rs 26,330. Silver ready (.999 fineness) dropped by Rs385 to end at Rs41,140 per kg from Rs41,525 on Friday.

On the global front, the shiny metal plummeted by nearly $40 an ounce on heavy speculative sell-off after stronger-than-expected jobs data fuelled worries that US Fed will start tapering its bullion-friendly stimulus measures.

Gold for August delivery lost $39.20 to settle at $1,212.70 an ounce on the Comex division of the NYMEX late on Friday. September silver contract also dropped 96 cents to end at $18.74 an counce.

Meanwhile, Indian shares rose on Friday to mark their second weekly gain as ITC rose after hiking prices for its products, while Hindustan Unilever advanced to a record high after parent company Unilever increased its stake in the Indian unit.

The benchmark BSE index rose 0.44 per cent, or 84.98 points, to end at 19,495.82, rising for a second consecutive week with a gain of 0.51 per cent.

The index erased its gains for the year at one point this week, but on Friday’s rise left it up 0.35 per cent for 2013.