Gold declines on sluggish demand

Last Updated: Mon, Feb 25, 2013 11:13 hrs

New Delhi: Snapping its two-days gaining trend, gold prices declined in the national capital no Monday due to sluggish demand at prevailing higher levels.

The yellow metal dipped by Rs 160 to Rs 29,900 per ten grams. Silver too plunged by Rs 1,450 to Rs 53,750 per kg.

Traders said sluggish demand at prevailing higher levels and market expectation of a correction in the prices mainly led the fall in gold and silver prices.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 160 each to Rs 29,900 and Rs 29,700 per ten grams, respectively. The metal had gained Rs 340 in the previous two sessions.

On the other hand, sovereign found selective buying and rose by Rs 100 to Rs 25,300 per piece of eight gram.

In line with a general weak trend, silver plunged by Rs 1,450 to Rs 53,750 per kg while weekly-based delivery spurted by Rs 1,545 to Rs 55,200 per kg on speculative buying. The white metal had gained Rs 650 in last two sessions.

However, silver coins lacked necessary buying support at higher levels and dropped by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.

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