Gold, silver losses add up on weak cues, soft demand

Gold’s downward movement continued for the second straight day as the prices fell Rs 20 to Rs 28,850 per 10 grams today, tracking a weak trend overseas amid easing demand from jewellers and retailers at the domestic spot market. Silver followed suit and lost another Rs 70 at Rs 39,000 per kg on lack of buying support from industrial units and coin makers.

Traders said sentiment remained bearish in line with a sluggish global trend on investors’ anticipation of higher borrowing costs in the US. Globally, gold fell by 0.55 per cent to USD 1,212.80 and silver by 0.58 per cent to USD 16.20 an ounce in New York in yesterday’s trade.

They said fading demand from jewellers as well as retailers at the domestic spot market queered the pitch. In the national capital, gold of 99.9 per cent and 99.5 per cent purity declined further by Rs 20 each to Rs 28,850 and Rs 28,700 per 10 grams, respectively. The precious metal had lost Rs 355 yesterday.

Sovereign also fell by Rs 200 to Rs 22,800 per piece of 8 grams. Silver ready too moved down by Rs 70 to Rs 39,000 per kg and weekly-based delivery slumped below the 39,000-mark by falling Rs 155 to Rs 38,865 per kg. Silver coins, however, held steady at Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.