Gold declines on reduced demand, silver rallies

Gold prices declined further at the domestic bullion market here today due to reduced demand from stockist and retailers amid lower global cues. However, silver continued its rally for the sixth straight session owing to increased offtake by industrial users.

Standard gold (99.5 purity) fell by Rs 65 to close at Rs 29,775 per 10 grams from Tuesday’s level of Rs 29,840. Pure gold (99.9 purity) also moved down by a similar margin to finish at Rs 29,925 per 10 grams as compared to Rs 29,990 yesterday.

However, silver (.999 fineness) advanced by Rs 130 to conclude at Rs 41,670 against Rs 41,540 previously. Globally, gold fell in early trade from the previous session’s six-week high ahead of a Federal Reserve policy decision, though concerns over an upcoming vote on Britain’s membership of the European Union underpinned prices.

Spot gold was down at USD 1,281.34 an ounce in early European trade, while spot silver was flat at USD 17.38 an ounce.