Gold price extends losses on weak global cues, muted demand

Mumbai-India (May 6)  Taking weak cues from overseas markets and falling demand from local jewellers at domestic spot market, gold extended its slide for yet another week falling by Rs 240 to end lower at Rs 32,080 per 10 grams at the bullion market.

Silver, however, in volatile movements on alternate bouts of buying or selling, managed to end slightly higher by Rs 50 to Rs 40,500 per kg.

Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers at domestic spot market, too put pressure on gold prices.

Globally, gold ended the week lower at USD 1,315 an ounce and silver at USD 16.50 an ounce in New York.

In the national capital, gold of 99.9 and 99.5 per cent purity started the week on a subdued note and day-to-day increased selling, triggered by a weak global trend, cracked below the Rs 32,000-mark to hit a low of Rs 31,980 and Rs 31,830 before bouncing back again to settled at Rs 32,080 and Rs 31,930 per ten grams respectively, showing a fall of Rs 240 each.

Sovereign gold followed suit and shed Rs 100 to Rs 24,700 per piece of eight grams.

On the other hand, after moving between gains and losses, silver ready ended the week higher by Rs 50 to Rs 40,500 per kg and weekly-based delivery close up by Rs 90 to Rs 39,095 per kg.

Silver coins, however, ended flat at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

TheAsianAge