Gold prices ease on subdued demand, silver prices rebound

Mumbai-India (Dec 21)  Gold prices eased further at the domestic bullion market in Mumbai on Wednesday on lower demand from investors and stockists as well as poor local buying interest.

Silver, on the other hand, recouped owing to persistent offtake from industrial users and speculative traders. Standard gold (99.5 purity) eased by Rs10 to close at Rs27,340 per 10 grams from Tuesday’s level of Rs27,350. Pure gold (99.9 purity) also moved down by a similar margin to end at Rs27,490 per 10 grams against Rs27,500 previously.

However, silver (.999 fineness) climbed by Rs270 per kg to conclude at Rs39,650 compared to Rs39,380 earlier. Globally, gold firmed as a retreat in the dollar from the previous session’s 14-year peak prompted some buyers to hunt bargains after the metal’s sharp slide from its November high.

Spot gold was up 0.2% at $1,133.90 an ounce in early trade, while US gold futures for February delivery were up $2.20 an ounce at $1,135.80.

Among other precious metals, silver was down 0.4% at $16.02 an ounce, off the previous day’s low of $15.59 an ounce, its weakest since 11 April.

Source: LiveMint