Gold melts to 3-week low on demand slump; silver also tanks

Gold melts to 3-week low on demand slump; silver also tanks

Last Updated: Mon, Dec 03, 2012 11:47 hrs
A salesman displays gold ornaments at a jewellery showroom in Chandigarh

New Delhi: Gold prices dropped for the fifth straight day and hit a three-week low at the domestic bullion market on Monday on steady unwinding by stockists as well as sluggish demand outlook, amid weak trends in overseas markets.

The yellow metal has lost a whopping Rs 1,225 per 10 grams in the last five days.

Silver also fell after a brief overnight rebound on the back of frantic speculative sell-off.

Standard gold (99.5 purity) plunged by Rs 200 per 10 grams to finish at Rs 31,275 from Friday's closing level of Rs 31,475.

Pure gold (99.9 purity) shed Rs 185 per 10 grams to conclude at Rs 31,430 from Rs 31,615.

Silver ready (.999 fineness) tanked by Rs 830 per kg to end at Rs 62,735 as against Rs 63,565 yesterday.

Globally, the yellow metal came under renewed selling, pressured by dollar strength amid uncertainties over the progress in US budget talks.

Gold for December delivery dropped by USD 17 an ounce (28 gm) to settle at USD 1,712.70 an ounce on the Comex division of the NYMEX late yesterday.

March silver contract also fell by USD 1.15 an ounce to close at USD 33.28 an ounce.

More from Sify: