Gold losses mount, silver takes a knock too

NEW DELHI: Gold prices suffered more losses by falling another Rs 130 to trade at a fresh 10-month low of Rs 28,450 per 10 grams today, mirroring a weak trend overseas amid slack demand from jewellers at the domestic market.

Silver too plunged by Rs 600 to Rs 41,250 per kg, hit hard by reduced offtake by industrial units and coin makers.

Traders said sentiment soured after a subdued global trend where gold closed at the lowest level since February as the Federal Reserve gears up to raise rates. US equities at record levels meant the precious metals saw their demand as safe haven dwindle further.

Globally, gold fell 0.92 per cent to USD 1,159.60 an ounce and silver by 1.06 per cent to USD 16.82 an ounce in New York yesterday.

In addition, a considerable drop in demand from jewellers and retailers at the domestic spot market in view of the prevailing cash crunch after the currency recall last month to flush out black money put pressure on the prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 130 each to Rs 28,450 and Rs 28,300 per 10 grams, respectively. The precious metal had lost Rs 130 yesterday.

Sovereign, however, remained unchanged at Rs 24,200 per piece of eight grams in limited deals.

Tracking gold, silver ready dived Rs 600 to Rs 41,250 per kg and weekly-based delivery traded lower by Rs 240 at Rs 41,220.

Prices of silver coins plummeted by Rs 1,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

 

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PTI